Correlation Between Grayscale Bitcoin and Natixis ETF
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Natixis ETF 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 Natixis ETF 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 Natixis ETF Trust, you can compare the effects of market volatilities on Grayscale Bitcoin and Natixis ETF 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 Natixis ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Natixis ETF.
Diversification Opportunities for Grayscale Bitcoin and Natixis ETF
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grayscale and Natixis is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Natixis ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Natixis ETF 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 Natixis ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Natixis ETF Trust has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Natixis ETF go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Natixis ETF
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the Natixis ETF. In addition to that, Grayscale Bitcoin is 5.24 times more volatile than Natixis ETF Trust. It trades about -0.01 of its total potential returns per unit of risk. Natixis ETF Trust is currently generating about 0.1 per unit of volatility. If you would invest 4,718 in Natixis ETF Trust on August 30, 2024 and sell it today you would earn a total of 813.00 from holding Natixis ETF Trust or generate 17.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 48.89% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. Natixis ETF Trust
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| Natixis ETF Trust |
Grayscale Bitcoin and Natixis ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Natixis ETF
The main advantage of trading using opposite Grayscale Bitcoin and Natixis ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Natixis ETF 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 Natixis ETF will offset losses from the drop in Natixis ETF'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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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