Correlation Between IShares Silver and Bitcoin Gold

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

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

Diversification Opportunities for IShares Silver and Bitcoin Gold

0.06

Correlation Coefficient

IShares Silver  Bitcoin Gold

Significant diversification

The 3 months correlation between IShares and Bitcoin is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding iShares Silver Trust and Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin Gold and IShares Silver 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 iShares Silver Trust are associated (or correlated) with Bitcoin Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin Gold has no effect on the direction of IShares Silver i.e., IShares Silver and Bitcoin Gold go up and down completely randomly.

Pair Corralation between IShares Silver and Bitcoin Gold

Considering the 90-day investment horizon IShares Silver is expected to generate 7.21 times less return on investment than Bitcoin Gold. But when comparing it to its historical volatility, iShares Silver Trust is 7.64 times less risky than Bitcoin Gold. It trades about 0.08 of its potential returns per unit of risk. Bitcoin Gold is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  74.00  in Bitcoin Gold on March 2, 2025 and sell it today you would earn a total of  4.00  from holding Bitcoin Gold or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	95.45%
Values	Daily Returns

iShares Silver Trust  vs.  Bitcoin Gold

iShares Silver Trust

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in iShares Silver Trust are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of fairly stable essential indicators, IShares Silver is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Bitcoin Gold

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Gold are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical and fundamental indicators, Bitcoin Gold exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with IShares Silver and Bitcoin Gold

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

The idea behind iShares Silver Trust and Bitcoin Gold 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 Transaction History module to view history of all your transactions and understand their impact on performance.