Correlation Between Grayscale Bitcoin and FIVR
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and FIVR 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 FIVR 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 FIVR, you can compare the effects of market volatilities on Grayscale Bitcoin and FIVR 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 FIVR. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and FIVR.
Diversification Opportunities for Grayscale Bitcoin and FIVR
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grayscale and FIVR is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and FIVR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIVR 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 FIVR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIVR has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and FIVR go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and FIVR
If you would invest 2,585 in Grayscale Bitcoin Mini on September 12, 2024 and sell it today you would earn a total of 1,909 from holding Grayscale Bitcoin Mini or generate 73.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 3.13% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. FIVR
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| FIVR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and FIVR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and FIVR
The main advantage of trading using opposite Grayscale Bitcoin and FIVR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, FIVR 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 FIVR will offset losses from the drop in FIVR'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 |
| FIVR vs. Strategy Shares Nasdaq | FIVR vs. Invesco BulletShares 2029 | FIVR vs. Strategy Shares NewfoundReSolve | FIVR vs. Global X NASDAQ |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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