Correlation Between Grayscale Bitcoin and Siren Nasdaq
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Siren Nasdaq 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 Siren Nasdaq 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 Siren Nasdaq NexGen, you can compare the effects of market volatilities on Grayscale Bitcoin and Siren Nasdaq 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 Siren Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Siren Nasdaq.
Diversification Opportunities for Grayscale Bitcoin and Siren Nasdaq
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grayscale and Siren is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Siren Nasdaq NexGen in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Siren Nasdaq NexGen 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 Siren Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Siren Nasdaq NexGen has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Siren Nasdaq go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Siren Nasdaq
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 1.31 times more return on investment than Siren Nasdaq. However, Grayscale Bitcoin is 1.31 times more volatile than Siren Nasdaq NexGen. It trades about 0.37 of its potential returns per unit of risk. Siren Nasdaq NexGen is currently generating about 0.12 per unit of risk. If you would invest 5,538 in Grayscale Bitcoin Trust on August 28, 2024 and sell it today you would earn a total of 2,004 from holding Grayscale Bitcoin Trust or generate 36.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Siren Nasdaq NexGen
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Siren Nasdaq NexGen |
Grayscale Bitcoin and Siren Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Siren Nasdaq
The main advantage of trading using opposite Grayscale Bitcoin and Siren Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Siren Nasdaq 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 Siren Nasdaq will offset losses from the drop in Siren Nasdaq'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 |
| Siren Nasdaq vs. Grayscale Bitcoin Trust | Siren Nasdaq vs. Grayscale Bitcoin Mini | Siren Nasdaq vs. First Trust SkyBridge |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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