Correlation Between Grayscale Bitcoin and John Hancock
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and John Hancock 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 John Hancock 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 John Hancock Exchange Traded, you can compare the effects of market volatilities on Grayscale Bitcoin and John Hancock 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 John Hancock. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and John Hancock.
Diversification Opportunities for Grayscale Bitcoin and John Hancock
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and John is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and John Hancock Exchange Traded in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on John Hancock Exchange 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 John Hancock. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of John Hancock Exchange has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and John Hancock go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and John Hancock
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 9.12 times more return on investment than John Hancock. However, Grayscale Bitcoin is 9.12 times more volatile than John Hancock Exchange Traded. It trades about 0.33 of its potential returns per unit of risk. John Hancock Exchange Traded is currently generating about 0.04 per unit of risk. If you would invest 3,185 in Grayscale Bitcoin Mini on August 31, 2024 and sell it today you would earn a total of 1,108 from holding Grayscale Bitcoin Mini or generate 34.79% 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. John Hancock Exchange Traded
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| John Hancock Exchange |
Grayscale Bitcoin and John Hancock Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and John Hancock
The main advantage of trading using opposite Grayscale Bitcoin and John Hancock positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, John Hancock 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 John Hancock will offset losses from the drop in John Hancock'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 |
| John Hancock vs. iShares ESG USD | John Hancock vs. FlexShares Disciplined Duration | John Hancock vs. iShares ESG 1 5 | John Hancock vs. First Trust 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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