Correlation Between Grayscale Bitcoin and Discipline Fund
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Discipline Fund 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 Discipline Fund 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 Discipline Fund ETF, you can compare the effects of market volatilities on Grayscale Bitcoin and Discipline Fund 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 Discipline Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Discipline Fund.
Diversification Opportunities for Grayscale Bitcoin and Discipline Fund
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and Discipline is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Discipline Fund ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Discipline Fund ETF 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 Discipline Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Discipline Fund ETF has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Discipline Fund go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Discipline Fund
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 9.11 times more return on investment than Discipline Fund. However, Grayscale Bitcoin is 9.11 times more volatile than Discipline Fund ETF. It trades about 0.13 of its potential returns per unit of risk. Discipline Fund ETF is currently generating about 0.06 per unit of risk. If you would invest 1,959 in Grayscale Bitcoin Trust on September 12, 2024 and sell it today you would earn a total of 5,697 from holding Grayscale Bitcoin Trust or generate 290.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Discipline Fund ETF
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Discipline Fund ETF |
Grayscale Bitcoin and Discipline Fund Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Discipline Fund
The main advantage of trading using opposite Grayscale Bitcoin and Discipline Fund positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Discipline Fund 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 Discipline Fund will offset losses from the drop in Discipline Fund'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 |
| Discipline Fund vs. ATAC Rotation ETF | Discipline Fund vs. Amplify BlackSwan ISWN | Discipline Fund vs. Tidal ETF Trust | Discipline Fund vs. Aptus Defined Risk |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |