Correlation Between Grayscale Bitcoin and Strategy Shares
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Strategy Shares 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 Strategy Shares 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 Strategy Shares Gold Hedged, you can compare the effects of market volatilities on Grayscale Bitcoin and Strategy Shares 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 Strategy Shares. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Strategy Shares.
Diversification Opportunities for Grayscale Bitcoin and Strategy Shares
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and Strategy is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Strategy Shares Gold Hedged in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Strategy Shares 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 Strategy Shares. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Strategy Shares Gold has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Strategy Shares go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Strategy Shares
If you would invest 3,220 in Grayscale Bitcoin Mini on August 30, 2024 and sell it today you would earn a total of 1,073 from holding Grayscale Bitcoin Mini or generate 33.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 4.55% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. Strategy Shares Gold Hedged
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| Strategy Shares Gold |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and Strategy Shares Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Strategy Shares
The main advantage of trading using opposite Grayscale Bitcoin and Strategy Shares positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Strategy Shares 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 Strategy Shares will offset losses from the drop in Strategy Shares' 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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