Correlation Between Bitwise 10 and Standpoint Multi-asset

Can any of the company-specific risk be diversified away by investing in both Bitwise 10 and Standpoint Multi-asset 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 10 and Standpoint Multi-asset into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitwise 10 Crypto and Standpoint Multi Asset, you can compare the effects of market volatilities on Bitwise 10 and Standpoint Multi-asset 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 10 with a short position of Standpoint Multi-asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise 10 and Standpoint Multi-asset.

Diversification Opportunities for Bitwise 10 and Standpoint Multi-asset

0.75

Correlation Coefficient

Bitwise 10  Standpoint Multi-asset

Poor diversification

The 3 months correlation between Bitwise and Standpoint is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise 10 Crypto and Standpoint Multi Asset in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standpoint Multi Asset and Bitwise 10 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 10 Crypto are associated (or correlated) with Standpoint Multi-asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standpoint Multi Asset has no effect on the direction of Bitwise 10 i.e., Bitwise 10 and Standpoint Multi-asset go up and down completely randomly.

Pair Corralation between Bitwise 10 and Standpoint Multi-asset

Given the investment horizon of 90 days Bitwise 10 Crypto is expected to generate 4.12 times more return on investment than Standpoint Multi-asset. However, Bitwise 10 is 4.12 times more volatile than Standpoint Multi Asset. It trades about 0.3 of its potential returns per unit of risk. Standpoint Multi Asset is currently generating about 0.15 per unit of risk. If you would invest  4,890  in Bitwise 10 Crypto on April 20, 2025 and sell it today you would earn a total of  2,710  from holding Bitwise 10 Crypto or generate 55.42% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.41%
Values	Daily Returns

Bitwise 10 Crypto  vs.  Standpoint Multi Asset

Bitwise 10 Crypto

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise 10 Crypto are ranked lower than 23 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly unsteady basic indicators, Bitwise 10 showed solid returns over the last few months and may actually be approaching a breakup point.

Standpoint Multi Asset

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Standpoint Multi Asset are ranked lower than 11 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong fundamental indicators, Standpoint Multi-asset is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitwise 10 and Standpoint Multi-asset

The main advantage of trading using opposite Bitwise 10 and Standpoint Multi-asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise 10 position performs unexpectedly, Standpoint Multi-asset 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 Standpoint Multi-asset will offset losses from the drop in Standpoint Multi-asset's long position.

The idea behind Bitwise 10 Crypto and Standpoint Multi Asset 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .