Correlation Between Grayscale Bitcoin and Walmart
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Walmart 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 Walmart 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 Walmart, you can compare the effects of market volatilities on Grayscale Bitcoin and Walmart 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 Walmart. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Walmart.
Diversification Opportunities for Grayscale Bitcoin and Walmart
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grayscale and Walmart is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Walmart in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Walmart 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 Walmart. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Walmart has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Walmart go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Walmart
Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 2.69 times more return on investment than Walmart. However, Grayscale Bitcoin is 2.69 times more volatile than Walmart. It trades about 0.17 of its potential returns per unit of risk. Walmart is currently generating about 0.41 per unit of risk. If you would invest 3,980 in Grayscale Bitcoin Mini on September 13, 2024 and sell it today you would earn a total of 454.00 from holding Grayscale Bitcoin Mini or generate 11.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Mini vs. Walmart
Performance |
| Timeline |
| Grayscale Bitcoin Mini |
| Walmart |
Grayscale Bitcoin and Walmart Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Walmart
The main advantage of trading using opposite Grayscale Bitcoin and Walmart positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Walmart 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 Walmart will offset losses from the drop in Walmart'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 |
| Walmart vs. Costco Wholesale Corp | Walmart vs. Dollar Tree | Walmart vs. BJs Wholesale Club | Walmart vs. Target |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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