Correlation Between SPDR SP and ProShares Bitcoin
Can any of the company-specific risk be diversified away by investing in both SPDR SP and ProShares Bitcoin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SPDR SP and ProShares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SPDR SP 500 and ProShares Bitcoin Strategy, you can compare the effects of market volatilities on SPDR SP and ProShares Bitcoin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SPDR SP with a short position of ProShares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of SPDR SP and ProShares Bitcoin.
Diversification Opportunities for SPDR SP and ProShares Bitcoin
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between SPDR and ProShares is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding SPDR SP 500 and ProShares Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Bitcoin and SPDR SP is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SPDR SP 500 are associated (or correlated) with ProShares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Bitcoin has no effect on the direction of SPDR SP i.e., SPDR SP and ProShares Bitcoin go up and down completely randomly.
Pair Corralation between SPDR SP and ProShares Bitcoin
Considering the 90-day investment horizon SPDR SP 500 is expected to generate 0.29 times more return on investment than ProShares Bitcoin. However, SPDR SP 500 is 3.46 times less risky than ProShares Bitcoin. It trades about 0.26 of its potential returns per unit of risk. ProShares Bitcoin Strategy is currently generating about 0.05 per unit of risk. If you would invest 58,764 in SPDR SP 500 on May 30, 2025 and sell it today you would earn a total of 5,899 from holding SPDR SP 500 or generate 10.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SPDR SP 500 vs. ProShares Bitcoin Strategy
Performance |
| Timeline |
| SPDR SP 500 |
| ProShares Bitcoin |
SPDR SP and ProShares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SPDR SP and ProShares Bitcoin
The main advantage of trading using opposite SPDR SP and ProShares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SPDR SP position performs unexpectedly, ProShares Bitcoin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ProShares Bitcoin will offset losses from the drop in ProShares Bitcoin's long position.| SPDR SP vs. FT Vest Equity | SPDR SP vs. Northern Lights | SPDR SP vs. Dimensional International High | SPDR SP vs. JPMorgan Fundamental Data |
| ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Grayscale Ethereum Trust | ProShares Bitcoin vs. Coinbase Global | ProShares Bitcoin vs. Valkyrie Bitcoin Strategy |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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