Correlation Between Valkyrie Bitcoin and First Trust

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

By analyzing existing cross correlation between Valkyrie Bitcoin Futures and First Trust Mid, you can compare the effects of market volatilities on Valkyrie Bitcoin and First Trust 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 Valkyrie Bitcoin with a short position of First Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Valkyrie Bitcoin and First Trust.

Diversification Opportunities for Valkyrie Bitcoin and First Trust

-0.47

Correlation Coefficient

Valkyrie Bitcoin  First Trust

Very good diversification

The 3 months correlation between Valkyrie and First is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Valkyrie Bitcoin Futures and First Trust Mid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Trust Mid and Valkyrie 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 Valkyrie Bitcoin Futures are associated (or correlated) with First Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Trust Mid has no effect on the direction of Valkyrie Bitcoin i.e., Valkyrie Bitcoin and First Trust go up and down completely randomly.

Pair Corralation between Valkyrie Bitcoin and First Trust

Given the investment horizon of 90 days Valkyrie Bitcoin Futures is expected to generate 4.83 times more return on investment than First Trust. However, Valkyrie Bitcoin is 4.83 times more volatile than First Trust Mid. It trades about 0.02 of its potential returns per unit of risk. First Trust Mid is currently generating about 0.01 per unit of risk. If you would invest  5,181  in Valkyrie Bitcoin Futures on July 1, 2025 and sell it today you would lose (1.00) from holding Valkyrie Bitcoin Futures or give up 0.02% of portfolio value over 90 days.

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

Valkyrie Bitcoin Futures  vs.  First Trust Mid

Valkyrie Bitcoin Futures

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Valkyrie Bitcoin Futures are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly strong technical and fundamental indicators, Valkyrie Bitcoin is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

First Trust Mid

Risk-Adjusted Performance

Soft

Over the last 90 days First Trust Mid has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound primary indicators, First Trust is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Valkyrie Bitcoin and First Trust

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

The idea behind Valkyrie Bitcoin Futures and First Trust Mid 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..