Correlation Between PT Bank and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both PT Bank and Grayscale Bitcoin 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 PT Bank and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PT Bank Rakyat and Grayscale Bitcoin Cash, you can compare the effects of market volatilities on PT Bank and Grayscale Bitcoin 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 PT Bank with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of PT Bank and Grayscale Bitcoin.
Diversification Opportunities for PT Bank and Grayscale Bitcoin
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BKRKF and Grayscale is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding PT Bank Rakyat and Grayscale Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Cash and PT Bank 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 PT Bank Rakyat are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Cash has no effect on the direction of PT Bank i.e., PT Bank and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between PT Bank and Grayscale Bitcoin
Assuming the 90 days horizon PT Bank Rakyat is expected to generate 1.03 times more return on investment than Grayscale Bitcoin. However, PT Bank is 1.03 times more volatile than Grayscale Bitcoin Cash. It trades about 0.0 of its potential returns per unit of risk. Grayscale Bitcoin Cash is currently generating about -0.16 per unit of risk. If you would invest 29.00 in PT Bank Rakyat on August 27, 2024 and sell it today you would lose (2.00) from holding PT Bank Rakyat or give up 6.9% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
PT Bank Rakyat vs. Grayscale Bitcoin Cash
Performance |
| Timeline |
| PT Bank Rakyat |
| Grayscale Bitcoin Cash |
PT Bank and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PT Bank and Grayscale Bitcoin
The main advantage of trading using opposite PT Bank and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PT Bank position performs unexpectedly, Grayscale Bitcoin 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 Grayscale Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.The idea behind PT Bank Rakyat and Grayscale Bitcoin Cash 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.| Grayscale Bitcoin vs. Grayscale Litecoin Trust | Grayscale Bitcoin vs. Grayscale Digital Large | Grayscale Bitcoin vs. Bitwise 10 Crypto | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
Check out your portfolio center.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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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