Correlation Between Grayscale Ethereum and Barclays ETN
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and Barclays ETN 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 Barclays ETN 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 Barclays ETN FI, you can compare the effects of market volatilities on Grayscale Ethereum and Barclays ETN 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 Barclays ETN. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and Barclays ETN.
Diversification Opportunities for Grayscale Ethereum and Barclays ETN
-0.76 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and Barclays is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and Barclays ETN FI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Barclays ETN FI 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 Barclays ETN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Barclays ETN FI has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and Barclays ETN go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and Barclays ETN
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to under-perform the Barclays ETN. In addition to that, Grayscale Ethereum is 4.96 times more volatile than Barclays ETN FI. It trades about -0.21 of its total potential returns per unit of risk. Barclays ETN FI is currently generating about 0.29 per unit of volatility. If you would invest 2,403 in Barclays ETN FI on November 30, 2024 and sell it today you would earn a total of 274.78 from holding Barclays ETN FI or generate 11.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. Barclays ETN FI
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| Barclays ETN FI |
Grayscale Ethereum and Barclays ETN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and Barclays ETN
The main advantage of trading using opposite Grayscale Ethereum and Barclays ETN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, Barclays ETN 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 Barclays ETN will offset losses from the drop in Barclays ETN's long position.| Grayscale Ethereum vs. Grayscale Funds Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust |
| Barclays ETN vs. Davis Select International | Barclays ETN vs. Principal Value ETF | Barclays ETN vs. WisdomTree Emerging Markets | Barclays ETN vs. Ballast SmallMid Cap |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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