Correlation Between STKD Bitcoin and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both STKD Bitcoin and Grayscale Bitcoin 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 STKD Bitcoin and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between STKD Bitcoin Gold and Grayscale Bitcoin Trust, you can compare the effects of market volatilities on STKD Bitcoin and Grayscale Bitcoin 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 STKD Bitcoin with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of STKD Bitcoin and Grayscale Bitcoin.
Diversification Opportunities for STKD Bitcoin and Grayscale Bitcoin
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between STKD and Grayscale is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding STKD Bitcoin Gold and Grayscale Bitcoin Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Trust and STKD 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 STKD Bitcoin Gold are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Trust has no effect on the direction of STKD Bitcoin i.e., STKD Bitcoin and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between STKD Bitcoin and Grayscale Bitcoin
Given the investment horizon of 90 days STKD Bitcoin Gold is expected to under-perform the Grayscale Bitcoin. In addition to that, STKD Bitcoin is 1.15 times more volatile than Grayscale Bitcoin Trust. It trades about -0.01 of its total potential returns per unit of risk. Grayscale Bitcoin Trust is currently generating about 0.02 per unit of volatility. If you would invest 7,633 in Grayscale Bitcoin Trust on October 10, 2024 and sell it today you would earn a total of 12.00 from holding Grayscale Bitcoin Trust or generate 0.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
STKD Bitcoin Gold vs. Grayscale Bitcoin Trust
Performance |
| Timeline |
| STKD Bitcoin Gold |
| Grayscale Bitcoin Trust |
STKD Bitcoin and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with STKD Bitcoin and Grayscale Bitcoin
The main advantage of trading using opposite STKD Bitcoin and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if STKD Bitcoin position performs unexpectedly, Grayscale Bitcoin 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 Grayscale Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.| STKD Bitcoin vs. Grayscale Bitcoin Trust | STKD Bitcoin vs. ProShares Bitcoin Strategy | STKD Bitcoin vs. Amplify Transformational Data | STKD Bitcoin vs. Siren Nasdaq NexGen |
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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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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