Correlation Between Grayscale Bitcoin and CHIM
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and CHIM 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 CHIM 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 CHIM, you can compare the effects of market volatilities on Grayscale Bitcoin and CHIM 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 CHIM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and CHIM.
Diversification Opportunities for Grayscale Bitcoin and CHIM
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and CHIM is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and CHIM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHIM 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 CHIM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHIM has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and CHIM go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and CHIM
If you would invest 7,802 in Grayscale Bitcoin Trust on November 4, 2024 and sell it today you would earn a total of 516.00 from holding Grayscale Bitcoin Trust or generate 6.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 5.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. CHIM
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| CHIM |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and CHIM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and CHIM
The main advantage of trading using opposite Grayscale Bitcoin and CHIM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, CHIM 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 CHIM will offset losses from the drop in CHIM's long position.| Grayscale Bitcoin vs. Grayscale Ethereum Trust | Grayscale Bitcoin vs. Riot Blockchain | Grayscale Bitcoin vs. MARA HOLDINGS INC | Grayscale Bitcoin vs. Coinbase Global |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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