Correlation Between Grayscale Bitcoin and Blue-Chip SBITOP
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By analyzing existing cross correlation between Grayscale Bitcoin Mini and Blue-Chip SBITOP, you can compare the effects of market volatilities on Grayscale Bitcoin and Blue-Chip SBITOP 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 Blue-Chip SBITOP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Blue-Chip SBITOP.
Diversification Opportunities for Grayscale Bitcoin and Blue-Chip SBITOP
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grayscale and Blue-Chip is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Blue-Chip SBITOP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blue-Chip SBITOP 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 Blue-Chip SBITOP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blue-Chip SBITOP has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Blue-Chip SBITOP go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Blue-Chip SBITOP
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 13.74 times more return on investment than Blue-Chip SBITOP. However, Grayscale Bitcoin is 13.74 times more volatile than Blue-Chip SBITOP. It trades about 0.38 of its potential returns per unit of risk. Blue-Chip SBITOP is currently generating about 0.23 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 Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. Blue-Chip SBITOP
Performance |
| Timeline |
Grayscale Bitcoin and Blue-Chip SBITOP Volatility Contrast
Predicted Return Density |
| Returns |
Grayscale Bitcoin Mini
Pair trading matchups for Grayscale Bitcoin
Blue-Chip SBITOP
Pair trading matchups for Blue-Chip SBITOP
Pair Trading with Grayscale Bitcoin and Blue-Chip SBITOP
The main advantage of trading using opposite Grayscale Bitcoin and Blue-Chip SBITOP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Blue-Chip SBITOP 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 Blue-Chip SBITOP will offset losses from the drop in Blue-Chip SBITOP'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 |
| Blue-Chip SBITOP vs. Delek Drilling | Blue-Chip SBITOP vs. Alvotech | Blue-Chip SBITOP vs. Awilco Drilling PLC | Blue-Chip SBITOP vs. Amgen Inc |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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