Correlation Between Purpose Bitcoin and RBC Quant

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

By analyzing existing cross correlation between Purpose Bitcoin ETF and RBC Quant EAFE, you can compare the effects of market volatilities on Purpose Bitcoin and RBC Quant 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 Purpose Bitcoin with a short position of RBC Quant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Purpose Bitcoin and RBC Quant.

Diversification Opportunities for Purpose Bitcoin and RBC Quant

-0.74

Correlation Coefficient

Purpose Bitcoin  RBC Quant

Pay attention - limited upside

The 3 months correlation between Purpose and RBC is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Purpose Bitcoin ETF and RBC Quant EAFE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Quant EAFE and Purpose 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 Purpose Bitcoin ETF are associated (or correlated) with RBC Quant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Quant EAFE has no effect on the direction of Purpose Bitcoin i.e., Purpose Bitcoin and RBC Quant go up and down completely randomly.

Pair Corralation between Purpose Bitcoin and RBC Quant

Assuming the 90 days trading horizon Purpose Bitcoin ETF is expected to under-perform the RBC Quant. In addition to that, Purpose Bitcoin is 3.76 times more volatile than RBC Quant EAFE. It trades about -0.11 of its total potential returns per unit of risk. RBC Quant EAFE is currently generating about 0.14 per unit of volatility. If you would invest  3,260  in RBC Quant EAFE on September 26, 2025 and sell it today you would earn a total of  233.00  from holding RBC Quant EAFE or generate 7.15% return on investment over 90 days.

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

Purpose Bitcoin ETF  vs.  RBC Quant EAFE

Purpose Bitcoin ETF

Risk-Adjusted Performance

Weakest

Over the last 90 days Purpose Bitcoin ETF has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unfluctuating performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the ETF investors.

RBC Quant EAFE

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Quant EAFE are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating fundamental indicators, RBC Quant may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Purpose Bitcoin and RBC Quant

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

The idea behind Purpose Bitcoin ETF and RBC Quant EAFE 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.