Correlation Between Grayscale Ethereum and IShares MSCI
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and IShares MSCI 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 Ethereum and IShares MSCI into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Ethereum Mini and iShares MSCI ACWI, you can compare the effects of market volatilities on Grayscale Ethereum and IShares MSCI 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 Ethereum with a short position of IShares MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and IShares MSCI.
Diversification Opportunities for Grayscale Ethereum and IShares MSCI
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and IShares is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and iShares MSCI ACWI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares MSCI ACWI and Grayscale Ethereum 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 Ethereum Mini are associated (or correlated) with IShares MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares MSCI ACWI has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and IShares MSCI go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and IShares MSCI
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to generate 5.7 times more return on investment than IShares MSCI. However, Grayscale Ethereum is 5.7 times more volatile than iShares MSCI ACWI. It trades about 0.03 of its potential returns per unit of risk. iShares MSCI ACWI is currently generating about 0.05 per unit of risk. If you would invest 3,270 in Grayscale Ethereum Mini on August 31, 2024 and sell it today you would earn a total of 114.00 from holding Grayscale Ethereum Mini or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 24.87% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. iShares MSCI ACWI
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| iShares MSCI ACWI |
Grayscale Ethereum and IShares MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and IShares MSCI
The main advantage of trading using opposite Grayscale Ethereum and IShares MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, IShares MSCI 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 IShares MSCI will offset losses from the drop in IShares MSCI's long position.| Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. Grayscale Ethereum Trust |
| IShares MSCI vs. iShares MSCI ACWI | IShares MSCI vs. iShares MSCI All | IShares MSCI vs. iShares MSCI EAFE | IShares MSCI vs. SPDR MSCI ACWI |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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