Correlation Between Martin Currie and Bitwise Funds

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

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

Diversification Opportunities for Martin Currie and Bitwise Funds

0.3

Correlation Coefficient

Martin Currie  Bitwise Funds

Weak diversification

The 3 months correlation between Martin and Bitwise is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Martin Currie Sustainable 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 Martin Currie 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 Martin Currie Sustainable 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 Martin Currie i.e., Martin Currie and Bitwise Funds go up and down completely randomly.

Pair Corralation between Martin Currie and Bitwise Funds

Given the investment horizon of 90 days Martin Currie is expected to generate 14.93 times less return on investment than Bitwise Funds. But when comparing it to its historical volatility, Martin Currie Sustainable is 1.76 times less risky than Bitwise Funds. It trades about 0.02 of its potential returns per unit of risk. Bitwise Funds Trust is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  5,858  in Bitwise Funds Trust on May 21, 2025 and sell it today you would earn a total of  1,223  from holding Bitwise Funds Trust or generate 20.88% return on investment over 90 days.

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

Martin Currie Sustainable  vs.  Bitwise Funds Trust

Martin Currie Sustainable

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Martin Currie Sustainable are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound basic indicators, Martin Currie is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Bitwise Funds Trust

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Funds Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak technical and fundamental indicators, Bitwise Funds sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Martin Currie and Bitwise Funds

The main advantage of trading using opposite Martin Currie and Bitwise Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Martin Currie 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 Martin Currie Sustainable 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.