Correlation Between Grayscale Bitcoin and STKD Bitcoin
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and STKD 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 Grayscale Bitcoin and STKD Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Bitcoin Mini and STKD Bitcoin Gold, you can compare the effects of market volatilities on Grayscale Bitcoin and STKD 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 Grayscale Bitcoin with a short position of STKD Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and STKD Bitcoin.
Diversification Opportunities for Grayscale Bitcoin and STKD Bitcoin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grayscale and STKD is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and STKD Bitcoin Gold in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on STKD Bitcoin Gold and Grayscale Bitcoin 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 Grayscale Bitcoin Mini are associated (or correlated) with STKD Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of STKD Bitcoin Gold has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and STKD Bitcoin go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and STKD Bitcoin
Considering the 90-day investment horizon Grayscale Bitcoin is expected to generate 1.85 times less return on investment than STKD Bitcoin. But when comparing it to its historical volatility, Grayscale Bitcoin Mini is 1.1 times less risky than STKD Bitcoin. It trades about 0.09 of its potential returns per unit of risk. STKD Bitcoin Gold is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,785 in STKD Bitcoin Gold on November 3, 2024 and sell it today you would earn a total of 238.00 from holding STKD Bitcoin Gold or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. STKD Bitcoin Gold
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| STKD Bitcoin Gold |
Grayscale Bitcoin and STKD Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and STKD Bitcoin
The main advantage of trading using opposite Grayscale Bitcoin and STKD Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, STKD 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 STKD Bitcoin will offset losses from the drop in STKD Bitcoin's long position.| Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. iShares Ethereum Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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