Correlation Between Grayscale Ethereum and Bondbloxx ETF

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Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and Bondbloxx ETF 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 Bondbloxx ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Ethereum Trust and Bondbloxx ETF Trust, you can compare the effects of market volatilities on Grayscale Ethereum and Bondbloxx ETF 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 Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and Bondbloxx ETF.

Diversification Opportunities for Grayscale Ethereum and Bondbloxx ETF

GrayscaleBondbloxxDiversified AwayGrayscaleBondbloxxDiversified Away100%
-0.53
  Correlation Coefficient

Excellent diversification

The 3 months correlation between Grayscale and Bondbloxx is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Trust and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust 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 Trust are associated (or correlated) with Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Grayscale Ethereum and Bondbloxx ETF

Given the investment horizon of 90 days Grayscale Ethereum Trust is expected to generate 31.18 times more return on investment than Bondbloxx ETF. However, Grayscale Ethereum is 31.18 times more volatile than Bondbloxx ETF Trust. It trades about 0.07 of its potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.11 per unit of risk. If you would invest  738.00  in Grayscale Ethereum Trust on November 19, 2024 and sell it today you would earn a total of  1,543  from holding Grayscale Ethereum Trust or generate 209.08% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthVery Weak
Accuracy100.0%
ValuesDaily Returns

Grayscale Ethereum Trust  vs.  Bondbloxx ETF Trust

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -1001020
JavaScript chart by amCharts 3.21.15ETHE XTWO
       Timeline  
Grayscale Ethereum Trust 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Grayscale Ethereum Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Etf's technical indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb22242628303234
Bondbloxx ETF Trust 

Risk-Adjusted Performance

Solid

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Bondbloxx ETF is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb48.648.748.848.94949.1

Grayscale Ethereum and Bondbloxx ETF Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-7.7-5.77-3.84-1.90.021.853.735.627.5 1020304050
JavaScript chart by amCharts 3.21.15ETHE XTWO
       Returns  

Pair Trading with Grayscale Ethereum and Bondbloxx ETF

The main advantage of trading using opposite Grayscale Ethereum and Bondbloxx ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, Bondbloxx ETF 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 Bondbloxx ETF will offset losses from the drop in Bondbloxx ETF's long position.
The idea behind Grayscale Ethereum Trust and Bondbloxx ETF Trust pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.

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