Correlation Between Bitwise Funds and IShares Trust

Can any of the company-specific risk be diversified away by investing in both Bitwise Funds and IShares 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 Bitwise Funds and IShares Trust 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 iShares Trust, you can compare the effects of market volatilities on Bitwise Funds and IShares 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 Bitwise Funds with a short position of IShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Funds and IShares Trust.

Diversification Opportunities for Bitwise Funds and IShares Trust

0.68

Correlation Coefficient

Bitwise Funds  IShares Trust

Poor diversification

The 3 months correlation between Bitwise and IShares is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and iShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Trust 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 IShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Trust has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and IShares Trust go up and down completely randomly.

Pair Corralation between Bitwise Funds and IShares Trust

Given the investment horizon of 90 days Bitwise Funds is expected to generate 1.13 times less return on investment than IShares Trust. In addition to that, Bitwise Funds is 4.2 times more volatile than iShares Trust. It trades about 0.04 of its total potential returns per unit of risk. iShares Trust is currently generating about 0.17 per unit of volatility. If you would invest  2,874  in iShares Trust on August 2, 2025 and sell it today you would earn a total of  203.00  from holding iShares Trust or generate 7.06% return on investment over 90 days.

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

Bitwise Funds Trust  vs.  iShares Trust

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 2 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Bitwise Funds is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

iShares Trust

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Trust are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, IShares Trust may actually be approaching a critical reversion point that can send shares even higher in December 2025.

Pair Trading with Bitwise Funds and IShares Trust

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

The idea behind Bitwise Funds Trust and iShares 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.