Correlation Between Grayscale Bitcoin and NEXTERA
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By analyzing existing cross correlation between Grayscale Bitcoin Mini and NEXTERA ENERGY CAPITAL, you can compare the effects of market volatilities on Grayscale Bitcoin and NEXTERA 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 NEXTERA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and NEXTERA.
Diversification Opportunities for Grayscale Bitcoin and NEXTERA
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and NEXTERA is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and NEXTERA ENERGY CAPITAL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NEXTERA ENERGY CAPITAL 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 NEXTERA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NEXTERA ENERGY CAPITAL has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and NEXTERA go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and NEXTERA
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 5.78 times more return on investment than NEXTERA. However, Grayscale Bitcoin is 5.78 times more volatile than NEXTERA ENERGY CAPITAL. It trades about 0.45 of its potential returns per unit of risk. NEXTERA ENERGY CAPITAL is currently generating about -0.34 per unit of risk. If you would invest 3,085 in Grayscale Bitcoin Mini on August 27, 2024 and sell it today you would earn a total of 1,320 from holding Grayscale Bitcoin Mini or generate 42.79% 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. NEXTERA ENERGY CAPITAL
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| NEXTERA ENERGY CAPITAL |
Grayscale Bitcoin and NEXTERA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and NEXTERA
The main advantage of trading using opposite Grayscale Bitcoin and NEXTERA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, NEXTERA 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 NEXTERA will offset losses from the drop in NEXTERA'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 |
| NEXTERA vs. Mativ Holdings | NEXTERA vs. Coupang LLC | NEXTERA vs. Simon Property Group | NEXTERA vs. HNI Corp |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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