Correlation Between Bitwise Funds and Schwab Target

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

By analyzing existing cross correlation between Bitwise Funds Trust and Schwab Target 2010, you can compare the effects of market volatilities on Bitwise Funds and Schwab 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 Bitwise Funds with a short position of Schwab Target. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Funds and Schwab Target.

Diversification Opportunities for Bitwise Funds and Schwab Target

-0.47

Correlation Coefficient

Bitwise Funds  Schwab Target

Very good diversification

The 3 months correlation between Bitwise and Schwab is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Funds Trust and Schwab Target 2010 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Schwab Target 2010 and Bitwise Funds 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 Funds Trust are associated (or correlated) with Schwab Target. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Schwab Target 2010 has no effect on the direction of Bitwise Funds i.e., Bitwise Funds and Schwab Target go up and down completely randomly.

Pair Corralation between Bitwise Funds and Schwab Target

Given the investment horizon of 90 days Bitwise Funds Trust is expected to under-perform the Schwab Target. In addition to that, Bitwise Funds is 14.74 times more volatile than Schwab Target 2010. It trades about -0.46 of its total potential returns per unit of risk. Schwab Target 2010 is currently generating about -0.21 per unit of volatility. If you would invest  1,361  in Schwab Target 2010 on August 23, 2025 and sell it today you would lose (18.00) from holding Schwab Target 2010 or give up 1.32% of portfolio value over 90 days.

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

Bitwise Funds Trust  vs.  Schwab Target 2010

Bitwise Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Bitwise Funds Trust 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 comparatively stable which may send shares a bit higher in December 2025. The newest uproar may also be a sign of mid-term up-swing for the exchange-traded fund private investors.

Schwab Target 2010

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Schwab Target 2010 are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong basic indicators, Schwab Target is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Bitwise Funds and Schwab Target

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

The idea behind Bitwise Funds Trust and Schwab Target 2010 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.