Correlation Between Bitcoin ETF and RBC Target

Can any of the company-specific risk be diversified away by investing in both Bitcoin ETF and RBC Target 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 RBC Target 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 RBC Target 2027, you can compare the effects of market volatilities on Bitcoin ETF and RBC Target 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 RBC Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin ETF and RBC Target.

Diversification Opportunities for Bitcoin ETF and RBC Target

0.77

Correlation Coefficient

Bitcoin ETF  RBC Target

Poor diversification

The 3 months correlation between Bitcoin and RBC is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin ETF CAD and RBC Target 2027 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RBC Target 2027 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 RBC Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RBC Target 2027 has no effect on the direction of Bitcoin ETF i.e., Bitcoin ETF and RBC Target go up and down completely randomly.

Pair Corralation between Bitcoin ETF and RBC Target

Assuming the 90 days trading horizon Bitcoin ETF CAD is expected to generate 22.81 times more return on investment than RBC Target. However, Bitcoin ETF is 22.81 times more volatile than RBC Target 2027. It trades about 0.23 of its potential returns per unit of risk. RBC Target 2027 is currently generating about 0.16 per unit of risk. If you would invest  4,295  in Bitcoin ETF CAD on April 20, 2025 and sell it today you would earn a total of  1,413  from holding Bitcoin ETF CAD or generate 32.9% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	98.44%
Values	Daily Returns

Bitcoin ETF CAD  vs.  RBC Target 2027

Bitcoin ETF CAD

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin ETF CAD are ranked lower than 18 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, Bitcoin ETF displayed solid returns over the last few months and may actually be approaching a breakup point.

RBC Target 2027

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in RBC Target 2027 are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, RBC Target is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Bitcoin ETF and RBC Target

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

The idea behind Bitcoin ETF CAD and RBC Target 2027 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.