Correlation Between Bitcoin ETF and AGFiQ Market

Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and AGFiQ Market 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 AGFiQ Market 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 AGFiQ Market Neutral, you can compare the effects of market volatilities on Bitcoin ETF and AGFiQ Market 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 AGFiQ Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and AGFiQ Market.

Diversification Opportunities for Bitcoin ETF and AGFiQ Market

-0.55

Correlation Coefficient

Bitcoin ETF  AGFiQ Market

Excellent diversification

The 3 months correlation between Bitcoin and AGFiQ is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and AGFiQ Market Neutral in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGFiQ Market Neutral 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 AGFiQ Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGFiQ Market Neutral has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and AGFiQ Market go up and down completely randomly.

Pair Corralation between Bitcoin ETF and AGFiQ Market

Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 1.99 times more return on investment than AGFiQ Market. However, Bitcoin ETF is 1.99 times more volatile than AGFiQ Market Neutral. It trades about 0.17 of its potential returns per unit of risk. AGFiQ Market Neutral is currently generating about -0.27 per unit of risk. If you would invest  4,698  in Bitcoin ETF CAD on April 25, 2025 and sell it today you would earn a total of  994.00  from holding Bitcoin ETF CAD or generate 21.16% return on investment over 90 days.

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

Bitcoin ETF CAD  vs.  AGFiQ Market Neutral

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.

AGFiQ Market Neutral

Risk-Adjusted Performance

Very Weak

Over the last 90 days AGFiQ Market Neutral has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain very healthy which may send shares a bit higher in August 2025. The recent disarray may also be a sign of long period up-swing for the ETF investors.

Pair Trading with Bitcoin ETF and AGFiQ Market

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

The idea behind Bitcoin ETF CAD and AGFiQ Market Neutral 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.