Correlation Between Grayscale Bitcoin and PHLX Swiss
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and PHLX Swiss 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 PHLX Swiss 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 PHLX Swiss Franc, you can compare the effects of market volatilities on Grayscale Bitcoin and PHLX Swiss 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 PHLX Swiss. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and PHLX Swiss.
Diversification Opportunities for Grayscale Bitcoin and PHLX Swiss
-0.92 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and PHLX is -0.92. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and PHLX Swiss Franc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on PHLX Swiss Franc 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 PHLX Swiss. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of PHLX Swiss Franc has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and PHLX Swiss go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and PHLX Swiss
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 7.0 times more return on investment than PHLX Swiss. However, Grayscale Bitcoin is 7.0 times more volatile than PHLX Swiss Franc. It trades about 0.45 of its potential returns per unit of risk. PHLX Swiss Franc is currently generating about -0.15 per unit of risk. If you would invest 2,985 in Grayscale Bitcoin Mini on September 3, 2024 and sell it today you would earn a total of 1,324 from holding Grayscale Bitcoin Mini or generate 44.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. PHLX Swiss Franc
Performance |
| Timeline |
Grayscale Bitcoin and PHLX Swiss Volatility Contrast
Predicted Return Density |
| Returns |
Grayscale Bitcoin Mini
Pair trading matchups for Grayscale Bitcoin
PHLX Swiss Franc
Pair trading matchups for PHLX Swiss
Pair Trading with Grayscale Bitcoin and PHLX Swiss
The main advantage of trading using opposite Grayscale Bitcoin and PHLX Swiss positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, PHLX Swiss 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 PHLX Swiss will offset losses from the drop in PHLX Swiss' long position.| Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. iShares Ethereum Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Grayscale Ethereum Trust |
| PHLX Swiss vs. American Axle Manufacturing | PHLX Swiss vs. VirnetX Holding Corp | PHLX Swiss vs. Tesla Inc | PHLX Swiss vs. Q2 Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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