Correlation Between Grayscale Bitcoin and Amplify Transformational
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Amplify Transformational 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 Amplify Transformational 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 Amplify Transformational Data, you can compare the effects of market volatilities on Grayscale Bitcoin and Amplify Transformational 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 Amplify Transformational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Amplify Transformational.
Diversification Opportunities for Grayscale Bitcoin and Amplify Transformational
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Grayscale and Amplify is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Amplify Transformational Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Transformational 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 Amplify Transformational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Transformational has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Amplify Transformational go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Amplify Transformational
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 1.5 times more return on investment than Amplify Transformational. However, Grayscale Bitcoin is 1.5 times more volatile than Amplify Transformational Data. It trades about 0.15 of its potential returns per unit of risk. Amplify Transformational Data is currently generating about 0.12 per unit of risk. If you would invest 1,855 in Grayscale Bitcoin Trust on August 29, 2024 and sell it today you would earn a total of 5,827 from holding Grayscale Bitcoin Trust or generate 314.12% 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. Amplify Transformational Data
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Amplify Transformational |
Grayscale Bitcoin and Amplify Transformational Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Amplify Transformational
The main advantage of trading using opposite Grayscale Bitcoin and Amplify Transformational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Amplify Transformational 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 Amplify Transformational will offset losses from the drop in Amplify Transformational'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 |
| Amplify Transformational vs. Siren Nasdaq NexGen | Amplify Transformational vs. First Trust Indxx | Amplify Transformational vs. ARK Fintech Innovation | Amplify Transformational vs. Grayscale Ethereum Trust |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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