Correlation Between Vanguard and 21Shares Bitcoin
Can any of the company-specific risk be diversified away by investing in both Vanguard and 21Shares 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 Vanguard and 21Shares Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Vanguard SP 500 and 21Shares Bitcoin Suisse, you can compare the effects of market volatilities on Vanguard and 21Shares 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 Vanguard with a short position of 21Shares Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanguard and 21Shares Bitcoin.
Diversification Opportunities for Vanguard and 21Shares Bitcoin
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Vanguard and 21Shares is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Vanguard SP 500 and 21Shares Bitcoin Suisse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 21Shares Bitcoin Suisse and Vanguard 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 Vanguard SP 500 are associated (or correlated) with 21Shares Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 21Shares Bitcoin Suisse has no effect on the direction of Vanguard i.e., Vanguard and 21Shares Bitcoin go up and down completely randomly.
Pair Corralation between Vanguard and 21Shares Bitcoin
Assuming the 90 days trading horizon Vanguard SP 500 is expected to generate 1.83 times more return on investment than 21Shares Bitcoin. However, Vanguard is 1.83 times more volatile than 21Shares Bitcoin Suisse. It trades about 0.16 of its potential returns per unit of risk. 21Shares Bitcoin Suisse is currently generating about 0.09 per unit of risk. If you would invest 6,965 in Vanguard SP 500 on May 28, 2025 and sell it today you would earn a total of 2,879 from holding Vanguard SP 500 or generate 41.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 98.39% |
| Values | Daily Returns |
Vanguard SP 500 vs. 21Shares Bitcoin Suisse
Performance |
| Timeline |
| Vanguard SP 500 |
| 21Shares Bitcoin Suisse |
Vanguard and 21Shares Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanguard and 21Shares Bitcoin
The main advantage of trading using opposite Vanguard and 21Shares Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanguard position performs unexpectedly, 21Shares 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 21Shares Bitcoin will offset losses from the drop in 21Shares Bitcoin's long position.| Vanguard vs. Vanguard FTSE Emerging | Vanguard vs. Vanguard USD Emerging | Vanguard vs. Vanguard FTSE Developed | Vanguard vs. Vanguard FTSE Japan |
| 21Shares Bitcoin vs. 21Shares Polygon ETP | 21Shares Bitcoin vs. 21Shares Ethereum Core | 21Shares Bitcoin vs. 21Shares Tezos staking | 21Shares Bitcoin vs. 21Shares Bitcoin ETP |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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