Correlation Between Grayscale Bitcoin and VanEck International
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and VanEck International 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 VanEck International 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 VanEck International High, you can compare the effects of market volatilities on Grayscale Bitcoin and VanEck International 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 VanEck International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and VanEck International.
Diversification Opportunities for Grayscale Bitcoin and VanEck International
-0.67 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and VanEck is -0.67. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and VanEck International High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck International High 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 VanEck International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck International High has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and VanEck International go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and VanEck International
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the VanEck International. In addition to that, Grayscale Bitcoin is 10.48 times more volatile than VanEck International High. It trades about -0.01 of its total potential returns per unit of risk. VanEck International High is currently generating about 0.09 per unit of volatility. If you would invest 1,839 in VanEck International High on August 28, 2024 and sell it today you would earn a total of 242.00 from holding VanEck International High or generate 13.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. VanEck International High
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| VanEck International High |
Grayscale Bitcoin and VanEck International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and VanEck International
The main advantage of trading using opposite Grayscale Bitcoin and VanEck International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, VanEck International 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 VanEck International will offset losses from the drop in VanEck International'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 |
| VanEck International vs. VanEck Emerging Markets | VanEck International vs. iShares International High | VanEck International vs. iShares Intl High | VanEck International vs. iShares JP Morgan |
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 Anywhere module to track or share privately all of your investments from the convenience of any device.
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