Correlation Between Grayscale Bitcoin and DB Base
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and DB Base 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 Bitcoin and DB Base into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Bitcoin Trust and DB Base Metals, you can compare the effects of market volatilities on Grayscale Bitcoin and DB Base 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 Bitcoin with a short position of DB Base. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and DB Base.
Diversification Opportunities for Grayscale Bitcoin and DB Base
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and BDDXF is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and DB Base Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DB Base Metals and Grayscale 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 Grayscale Bitcoin Trust are associated (or correlated) with DB Base. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DB Base Metals has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and DB Base go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and DB Base
If you would invest 747.00 in DB Base Metals on October 11, 2024 and sell it today you would earn a total of 0.00 from holding DB Base Metals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 5.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. DB Base Metals
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| DB Base Metals |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and DB Base Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and DB Base
The main advantage of trading using opposite Grayscale Bitcoin and DB Base positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, DB Base 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 DB Base will offset losses from the drop in DB Base's long position.| Grayscale Bitcoin vs. Grayscale Ethereum Trust | Grayscale Bitcoin vs. Riot Blockchain | Grayscale Bitcoin vs. Marathon Digital Holdings | Grayscale Bitcoin vs. Coinbase Global |
| DB Base vs. FT Vest Equity | DB Base vs. Zillow Group Class | DB Base vs. Northern Lights | DB Base vs. VanEck Vectors Moodys |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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