Correlation Between Bitwise Funds and Allspring Exchange

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

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

Diversification Opportunities for Bitwise Funds and Allspring Exchange

0.57

Correlation Coefficient

Bitwise Funds  Allspring Exchange

Very weak diversification

The 3 months correlation between Bitwise and Allspring is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and Allspring Exchange Traded Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allspring Exchange and Bitwise Funds 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 Funds Trust are associated (or correlated) with Allspring Exchange. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allspring Exchange has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and Allspring Exchange go up and down completely randomly.

Pair Corralation between Bitwise Funds and Allspring Exchange

Given the investment horizon of 90 days Bitwise Funds is expected to generate 3.42 times less return on investment than Allspring Exchange. In addition to that, Bitwise Funds is 3.87 times more volatile than Allspring Exchange Traded Funds. It trades about 0.01 of its total potential returns per unit of risk. Allspring Exchange Traded Funds is currently generating about 0.16 per unit of volatility. If you would invest  2,559  in Allspring Exchange Traded Funds on August 8, 2025 and sell it today you would earn a total of  183.00  from holding Allspring Exchange Traded Funds or generate 7.15% return on investment over 90 days.

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

Bitwise Funds Trust  vs.  Allspring Exchange Traded Fund

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 fairly strong basic indicators, Bitwise Funds is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Allspring Exchange

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Allspring Exchange Traded Funds are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak basic indicators, Allspring Exchange may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Bitwise Funds and Allspring Exchange

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

The idea behind Bitwise Funds Trust and Allspring Exchange Traded Funds 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 Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.