Correlation Between Cullen Small and Bitwise Funds

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

By analyzing existing cross correlation between Cullen Small Cap and Bitwise Funds Trust, you can compare the effects of market volatilities on Cullen Small and Bitwise Funds 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 Cullen Small with a short position of Bitwise Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cullen Small and Bitwise Funds.

Diversification Opportunities for Cullen Small and Bitwise Funds

0.47

Correlation Coefficient

Cullen Small  Bitwise Funds

Very weak diversification

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

Pair Corralation between Cullen Small and Bitwise Funds

Assuming the 90 days horizon Cullen Small Cap is expected to generate 0.49 times more return on investment than Bitwise Funds. However, Cullen Small Cap is 2.03 times less risky than Bitwise Funds. It trades about -0.05 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about -0.08 per unit of risk. If you would invest  1,339  in Cullen Small Cap on August 19, 2025 and sell it today you would lose (66.00) from holding Cullen Small Cap or give up 4.93% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.46%
Values	Daily Returns

Cullen Small Cap  vs.  Bitwise Funds Trust

Cullen Small Cap

Risk-Adjusted Performance

Weakest

Over the last 90 days Cullen Small Cap has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Cullen Small is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Bitwise Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Bitwise Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in December 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Pair Trading with Cullen Small and Bitwise Funds

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

The idea behind Cullen Small Cap and Bitwise Funds Trust 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.