Correlation Between Grayscale Bitcoin and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin 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 Grayscale Bitcoin and Grayscale 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 Grayscale Bitcoin Trust, you can compare the effects of market volatilities on Grayscale Bitcoin 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 Grayscale Bitcoin with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Grayscale Bitcoin.
Diversification Opportunities for Grayscale Bitcoin and Grayscale Bitcoin
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grayscale and Grayscale is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Grayscale Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Trust 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 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 Trust has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Grayscale Bitcoin
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the Grayscale Bitcoin. But the etf apears to be less risky and, when comparing its historical volatility, Grayscale Bitcoin Mini is 1.11 times less risky than Grayscale Bitcoin. The etf trades about -0.01 of its potential returns per unit of risk. The Grayscale Bitcoin Trust is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 882.00 in Grayscale Bitcoin Trust on August 26, 2024 and sell it today you would earn a total of 7,005 from holding Grayscale Bitcoin Trust or generate 794.22% 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. Grayscale Bitcoin Trust
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| Grayscale Bitcoin Trust |
Grayscale Bitcoin and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Grayscale Bitcoin
The main advantage of trading using opposite Grayscale Bitcoin and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin 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.| Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. iShares Ethereum Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
| Grayscale Bitcoin vs. Grayscale Ethereum Trust | Grayscale Bitcoin vs. Riot Blockchain | Grayscale Bitcoin vs. Marathon Digital Holdings | Grayscale Bitcoin vs. Coinbase Global |
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 CEOs Directory module to screen CEOs from public companies around the world.
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