Correlation Between Bitwise Funds and Bitwise Crypto

Can any of the company-specific risk be diversified away by investing in both Bitwise Funds and Bitwise Crypto 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 Bitwise Funds and Bitwise Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitwise Funds Trust and Bitwise Crypto Industry, you can compare the effects of market volatilities on Bitwise Funds and Bitwise Crypto 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 Bitwise Funds with a short position of Bitwise Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Funds and Bitwise Crypto.

Diversification Opportunities for Bitwise Funds and Bitwise Crypto

0.0

Correlation Coefficient

Bitwise Funds  Bitwise Crypto

Pay attention - limited upside

The 3 months correlation between Bitwise and Bitwise is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and Bitwise Crypto Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Crypto Industry and Bitwise Funds 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 Bitwise Funds Trust are associated (or correlated) with Bitwise Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Crypto Industry has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and Bitwise Crypto go up and down completely randomly.

Pair Corralation between Bitwise Funds and Bitwise Crypto

If you would invest  1,698  in Bitwise Crypto Industry on May 16, 2025 and sell it today you would earn a total of  268.00  from holding Bitwise Crypto Industry or generate 15.78% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Bitwise Funds Trust  vs.  Bitwise Crypto Industry

Bitwise Funds Trust

Risk-Adjusted Performance

Soft

Over the last 90 days Bitwise Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Bitwise Funds is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Bitwise Crypto Industry

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Crypto Industry are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak basic indicators, Bitwise Crypto reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitwise Funds and Bitwise Crypto

The main advantage of trading using opposite Bitwise Funds and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Funds position performs unexpectedly, Bitwise Crypto 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 Bitwise Crypto will offset losses from the drop in Bitwise Crypto's long position.

The idea behind Bitwise Funds Trust and Bitwise Crypto Industry pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.