Correlation Between ProShares Bitcoin and SGI Dynamic

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

By analyzing existing cross correlation between ProShares Bitcoin Strategy and SGI Dynamic Tactical, you can compare the effects of market volatilities on ProShares Bitcoin and SGI Dynamic 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 ProShares Bitcoin with a short position of SGI Dynamic. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and SGI Dynamic.

Diversification Opportunities for ProShares Bitcoin and SGI Dynamic

0.81

Correlation Coefficient

ProShares Bitcoin  SGI Dynamic

Very poor diversification

The 3 months correlation between ProShares and SGI is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and SGI Dynamic Tactical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SGI Dynamic Tactical and ProShares Bitcoin 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 ProShares Bitcoin Strategy are associated (or correlated) with SGI Dynamic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SGI Dynamic Tactical has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and SGI Dynamic go up and down completely randomly.

Pair Corralation between ProShares Bitcoin and SGI Dynamic

Given the investment horizon of 90 days ProShares Bitcoin Strategy is expected to generate 8.69 times more return on investment than SGI Dynamic. However, ProShares Bitcoin is 8.69 times more volatile than SGI Dynamic Tactical. It trades about 0.14 of its potential returns per unit of risk. SGI Dynamic Tactical is currently generating about 0.17 per unit of risk. If you would invest  1,732  in ProShares Bitcoin Strategy on May 5, 2025 and sell it today you would earn a total of  318.00  from holding ProShares Bitcoin Strategy or generate 18.36% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

ProShares Bitcoin Strategy  vs.  SGI Dynamic Tactical

ProShares Bitcoin

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Bitcoin Strategy are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unsteady basic indicators, ProShares Bitcoin displayed solid returns over the last few months and may actually be approaching a breakup point.

SGI Dynamic Tactical

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in SGI Dynamic Tactical are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, SGI Dynamic is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with ProShares Bitcoin and SGI Dynamic

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

The idea behind ProShares Bitcoin Strategy and SGI Dynamic Tactical 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.