Correlation Between Bitwise Core and Identiv

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

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

Diversification Opportunities for Bitwise Core and Identiv

0.26

Correlation Coefficient

Bitwise Core  Identiv

Modest diversification

The 3 months correlation between Bitwise and Identiv is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Core Bitcoin and Identiv in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Identiv and Bitwise Core 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 Core Bitcoin are associated (or correlated) with Identiv. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Identiv has no effect on the direction of Bitwise Core i.e., Bitwise Core and Identiv go up and down completely randomly.

Pair Corralation between Bitwise Core and Identiv

Assuming the 90 days trading horizon Bitwise Core Bitcoin is expected to generate 0.69 times more return on investment than Identiv. However, Bitwise Core Bitcoin is 1.45 times less risky than Identiv. It trades about 0.21 of its potential returns per unit of risk. Identiv is currently generating about 0.08 per unit of risk. If you would invest  790.00  in Bitwise Core Bitcoin on April 22, 2025 and sell it today you would earn a total of  217.00  from holding Bitwise Core Bitcoin or generate 27.47% return on investment over 90 days.

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

Bitwise Core Bitcoin  vs.  Identiv

Bitwise Core Bitcoin

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitwise Core Bitcoin are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, Bitwise Core exhibited solid returns over the last few months and may actually be approaching a breakup point.

Identiv

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Identiv are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain basic indicators, Identiv reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitwise Core and Identiv

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

The idea behind Bitwise Core Bitcoin and Identiv 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.