Correlation Between Defiance Daily and Bitwise Funds

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

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

Diversification Opportunities for Defiance Daily and Bitwise Funds

-0.02

Correlation Coefficient

Defiance Daily  Bitwise Funds

Good diversification

The 3 months correlation between Defiance and Bitwise is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Defiance Daily Target 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 Defiance Daily 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 Defiance Daily Target 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 Defiance Daily i.e., Defiance Daily and Bitwise Funds go up and down completely randomly.

Pair Corralation between Defiance Daily and Bitwise Funds

Given the investment horizon of 90 days Defiance Daily Target is expected to generate 119.02 times more return on investment than Bitwise Funds. However, Defiance Daily is 119.02 times more volatile than Bitwise Funds Trust. It trades about 0.31 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about 0.02 per unit of risk. If you would invest  0.00  in Defiance Daily Target on May 15, 2025 and sell it today you would earn a total of  1,715  from holding Defiance Daily Target or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	16.39%
Values	Daily Returns

Defiance Daily Target  vs.  Bitwise Funds Trust

Defiance Daily Target

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Defiance Daily Target are ranked lower than 24 (%) of all global equities and portfolios over the last 90 days. In spite of fairly uncertain basic indicators, Defiance Daily showed solid returns over the last few months and may actually be approaching a breakup point.

Bitwise Funds Trust

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Funds Trust are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Bitwise Funds is not utilizing all of its potentials. The newest stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Defiance Daily and Bitwise Funds

The main advantage of trading using opposite Defiance Daily and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Defiance Daily 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 Defiance Daily Target 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.