Correlation Between Bitcoin ETF and Evolve Cloud

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

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

Diversification Opportunities for Bitcoin ETF and Evolve Cloud

0.66

Correlation Coefficient

Bitcoin ETF  Evolve Cloud

Poor diversification

The 3 months correlation between Bitcoin and Evolve is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and Evolve Cloud Computing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Evolve Cloud Computing and Bitcoin ETF 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 Bitcoin ETF CAD are associated (or correlated) with Evolve Cloud. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Evolve Cloud Computing has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and Evolve Cloud go up and down completely randomly.

Pair Corralation between Bitcoin ETF and Evolve Cloud

Assuming the 90 days trading horizon Bitcoin ETF is expected to generate 1.2 times less return on investment than Evolve Cloud. In addition to that, Bitcoin ETF is 1.59 times more volatile than Evolve Cloud Computing. It trades about 0.18 of its total potential returns per unit of risk. Evolve Cloud Computing is currently generating about 0.34 per unit of volatility. If you would invest  2,575  in Evolve Cloud Computing on April 23, 2025 and sell it today you would earn a total of  746.00  from holding Evolve Cloud Computing or generate 28.97% return on investment over 90 days.

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

Bitcoin ETF CAD  vs.  Evolve Cloud Computing

Bitcoin ETF CAD

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin ETF CAD are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Bitcoin ETF displayed solid returns over the last few months and may actually be approaching a breakup point.

Evolve Cloud Computing

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in Evolve Cloud Computing are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Evolve Cloud sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin ETF and Evolve Cloud

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

The idea behind Bitcoin ETF CAD and Evolve Cloud Computing 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.