Correlation Between ProShares Bitcoin and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both ProShares Bitcoin and Fidelity MSCI 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 Fidelity MSCI 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 Fidelity MSCI Information, you can compare the effects of market volatilities on ProShares Bitcoin and Fidelity MSCI 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 Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of ProShares Bitcoin and Fidelity MSCI.
Diversification Opportunities for ProShares Bitcoin and Fidelity MSCI
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between ProShares and Fidelity is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding ProShares Bitcoin Strategy and Fidelity MSCI Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Information 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 Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Information has no effect on the direction of ProShares Bitcoin i.e., ProShares Bitcoin and Fidelity MSCI go up and down completely randomly.
Pair Corralation between ProShares Bitcoin and Fidelity MSCI
Given the investment horizon of 90 days ProShares Bitcoin is expected to generate 1.02 times less return on investment than Fidelity MSCI. In addition to that, ProShares Bitcoin is 1.82 times more volatile than Fidelity MSCI Information. It trades about 0.14 of its total potential returns per unit of risk. Fidelity MSCI Information is currently generating about 0.27 per unit of volatility. If you would invest 16,745 in Fidelity MSCI Information on May 4, 2025 and sell it today you would earn a total of 3,321 from holding Fidelity MSCI Information or generate 19.83% 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. Fidelity MSCI Information
Performance |
Timeline |
ProShares Bitcoin |
Fidelity MSCI Information |
ProShares Bitcoin and Fidelity MSCI Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ProShares Bitcoin and Fidelity MSCI
The main advantage of trading using opposite ProShares Bitcoin and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ProShares Bitcoin position performs unexpectedly, Fidelity MSCI 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 Fidelity MSCI will offset losses from the drop in Fidelity MSCI's long position.ProShares Bitcoin vs. Grayscale Bitcoin Trust | ProShares Bitcoin vs. Grayscale Ethereum Trust | ProShares Bitcoin vs. Coinbase Global | ProShares Bitcoin vs. Valkyrie Bitcoin Strategy |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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