Correlation Between Global X and Bitwise Crypto

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

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

Diversification Opportunities for Global X and Bitwise Crypto

0.96

Correlation Coefficient

Global X  Bitwise Crypto

Almost no diversification

The 3 months correlation between Global and Bitwise is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain 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 Global X 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 Global X Blockchain 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 Global X i.e., Global X and Bitwise Crypto go up and down completely randomly.

Pair Corralation between Global X and Bitwise Crypto

Given the investment horizon of 90 days Global X Blockchain is expected to generate 0.94 times more return on investment than Bitwise Crypto. However, Global X Blockchain is 1.06 times less risky than Bitwise Crypto. It trades about 0.24 of its potential returns per unit of risk. Bitwise Crypto Industry is currently generating about 0.19 per unit of risk. If you would invest  7,463  in Global X Blockchain on July 5, 2025 and sell it today you would earn a total of  3,033  from holding Global X Blockchain or generate 40.64% return on investment over 90 days.

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

Global X Blockchain  vs.  Bitwise Crypto Industry

Global X Blockchain

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Blockchain are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Global X unveiled solid returns over the last few months and may actually be approaching a breakup point.

Bitwise Crypto Industry

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Crypto Industry are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Even with relatively abnormal basic indicators, Bitwise Crypto reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global X and Bitwise Crypto

The main advantage of trading using opposite Global X and Bitwise Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X 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 Global X Blockchain 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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.