Correlation Between 21shares Core and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both 21shares Core 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 21shares Core and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between 21shares Core Ethereum and Grayscale Bitcoin Trust, you can compare the effects of market volatilities on 21shares Core 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 21shares Core with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21shares Core and Grayscale Bitcoin.
Diversification Opportunities for 21shares Core and Grayscale Bitcoin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 21shares and Grayscale is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding 21shares Core Ethereum 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 21shares Core 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 21shares Core Ethereum 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 21shares Core i.e., 21shares Core and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between 21shares Core and Grayscale Bitcoin
Given the investment horizon of 90 days 21shares Core Ethereum is expected to generate 1.28 times more return on investment than Grayscale Bitcoin. However, 21shares Core is 1.28 times more volatile than Grayscale Bitcoin Trust. It trades about 0.38 of its potential returns per unit of risk. Grayscale Bitcoin Trust is currently generating about 0.42 per unit of risk. If you would invest 1,210 in 21shares Core Ethereum on September 4, 2024 and sell it today you would earn a total of 600.00 from holding 21shares Core Ethereum or generate 49.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
21shares Core Ethereum vs. Grayscale Bitcoin Trust
Performance |
| Timeline |
| 21shares Core Ethereum |
| Grayscale Bitcoin Trust |
21shares Core and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21shares Core and Grayscale Bitcoin
The main advantage of trading using opposite 21shares Core and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21shares Core 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.| 21shares Core vs. Grayscale Bitcoin Trust | 21shares Core vs. ProShares Bitcoin Strategy | 21shares Core vs. Amplify Transformational Data | 21shares Core vs. First Trust Indxx |
| Grayscale Bitcoin vs. Grayscale Ethereum Trust | Grayscale Bitcoin vs. Riot Blockchain | Grayscale Bitcoin vs. Marathon Digital Holdings | Grayscale Bitcoin vs. Coinbase Global |
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 Stocks Directory module to find actively traded stocks across global markets.
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