Correlation Between Bitwise Solana and Bitwise Core

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

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

Diversification Opportunities for Bitwise Solana and Bitwise Core

0.01

Correlation Coefficient

Bitwise Solana  Bitwise Core

Significant diversification

The 3 months correlation between Bitwise and Bitwise is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Solana Staking and Bitwise Core Bitcoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitwise Core Bitcoin and Bitwise Solana 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 Solana Staking are associated (or correlated) with Bitwise Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitwise Core Bitcoin has no effect on the direction of Bitwise Solana i.e., Bitwise Solana and Bitwise Core go up and down completely randomly.

Pair Corralation between Bitwise Solana and Bitwise Core

Assuming the 90 days trading horizon Bitwise Solana is expected to generate 1.34 times less return on investment than Bitwise Core. In addition to that, Bitwise Solana is 1.8 times more volatile than Bitwise Core Bitcoin. It trades about 0.04 of its total potential returns per unit of risk. Bitwise Core Bitcoin is currently generating about 0.1 per unit of volatility. If you would invest  924.00  in Bitwise Core Bitcoin on May 13, 2025 and sell it today you would earn a total of  110.00  from holding Bitwise Core Bitcoin or generate 11.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	18.18%
Values	Daily Returns

Bitwise Solana Staking  vs.  Bitwise Core Bitcoin

Bitwise Solana Staking

Risk-Adjusted Performance

Weakest

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Solana Staking are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile primary indicators, Bitwise Solana may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Bitwise Core Bitcoin

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Core Bitcoin are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bitwise Core may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bitwise Solana and Bitwise Core

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

The idea behind Bitwise Solana Staking and Bitwise Core Bitcoin 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.