Correlation Between Grayscale Bitcoin and Goldman Sachs
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Goldman Sachs 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 Goldman Sachs 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 Goldman Sachs ETF, you can compare the effects of market volatilities on Grayscale Bitcoin and Goldman Sachs 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 Goldman Sachs. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Goldman Sachs.
Diversification Opportunities for Grayscale Bitcoin and Goldman Sachs
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and Goldman is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Goldman Sachs ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs ETF 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 Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs ETF has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Goldman Sachs go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Goldman Sachs
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 10.21 times more return on investment than Goldman Sachs. However, Grayscale Bitcoin is 10.21 times more volatile than Goldman Sachs ETF. It trades about 0.38 of its potential returns per unit of risk. Goldman Sachs ETF is currently generating about 0.13 per unit of risk. If you would invest 3,105 in Grayscale Bitcoin Mini on September 1, 2024 and sell it today you would earn a total of 1,204 from holding Grayscale Bitcoin Mini or generate 38.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. Goldman Sachs ETF
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| Goldman Sachs ETF |
Grayscale Bitcoin and Goldman Sachs Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Goldman Sachs
The main advantage of trading using opposite Grayscale Bitcoin and Goldman Sachs positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Goldman Sachs 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 Goldman Sachs will offset losses from the drop in Goldman Sachs' long position.| Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. iShares Ethereum Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
| Goldman Sachs vs. iShares JP Morgan | Goldman Sachs vs. SPDR Bloomberg Barclays | Goldman Sachs vs. SPDR DoubleLine Emerging | Goldman Sachs vs. JPMorgan USD Emerging |
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.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |