Correlation Between Hashdex Nasdaq and Simplify Bitcoin

Can any of the company-specific risk be diversified away by investing in both Hashdex Nasdaq and Simplify Bitcoin 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 Hashdex Nasdaq and Simplify Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hashdex Nasdaq Crypto and Simplify Bitcoin Strategy, you can compare the effects of market volatilities on Hashdex Nasdaq and Simplify Bitcoin 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 Hashdex Nasdaq with a short position of Simplify Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hashdex Nasdaq and Simplify Bitcoin.

Diversification Opportunities for Hashdex Nasdaq and Simplify Bitcoin

0.8

Correlation Coefficient

Hashdex Nasdaq  Simplify Bitcoin

Very poor diversification

The 3 months correlation between Hashdex and Simplify is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Hashdex Nasdaq Crypto and Simplify Bitcoin Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Simplify Bitcoin Strategy and Hashdex Nasdaq 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 Hashdex Nasdaq Crypto are associated (or correlated) with Simplify Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Simplify Bitcoin Strategy has no effect on the direction of Hashdex Nasdaq i.e., Hashdex Nasdaq and Simplify Bitcoin go up and down completely randomly.

Pair Corralation between Hashdex Nasdaq and Simplify Bitcoin

Given the investment horizon of 90 days Hashdex Nasdaq Crypto is expected to generate 0.6 times more return on investment than Simplify Bitcoin. However, Hashdex Nasdaq Crypto is 1.66 times less risky than Simplify Bitcoin. It trades about 0.13 of its potential returns per unit of risk. Simplify Bitcoin Strategy is currently generating about 0.02 per unit of risk. If you would invest  2,726  in Hashdex Nasdaq Crypto on May 20, 2025 and sell it today you would earn a total of  461.00  from holding Hashdex Nasdaq Crypto or generate 16.91% return on investment over 90 days.

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

Hashdex Nasdaq Crypto  vs.  Simplify Bitcoin Strategy

Hashdex Nasdaq Crypto

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hashdex Nasdaq Crypto are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain forward indicators, Hashdex Nasdaq reported solid returns over the last few months and may actually be approaching a breakup point.

Simplify Bitcoin Strategy

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Simplify Bitcoin Strategy are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong basic indicators, Simplify Bitcoin is not utilizing all of its potentials. The newest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Hashdex Nasdaq and Simplify Bitcoin

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

The idea behind Hashdex Nasdaq Crypto and Simplify Bitcoin Strategy 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.

Check out your portfolio center.

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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.