Correlation Between Grayscale Bitcoin and Fidelity MSCI
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Fidelity MSCI 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 Fidelity MSCI 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 Fidelity MSCI Real, you can compare the effects of market volatilities on Grayscale Bitcoin and Fidelity MSCI 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 Fidelity MSCI. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Fidelity MSCI.
Diversification Opportunities for Grayscale Bitcoin and Fidelity MSCI
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grayscale and Fidelity is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Fidelity MSCI Real in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity MSCI Real 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 Fidelity MSCI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity MSCI Real has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Fidelity MSCI go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Fidelity MSCI
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 3.35 times more return on investment than Fidelity MSCI. However, Grayscale Bitcoin is 3.35 times more volatile than Fidelity MSCI Real. It trades about 0.13 of its potential returns per unit of risk. Fidelity MSCI Real is currently generating about 0.02 per unit of risk. If you would invest 1,085 in Grayscale Bitcoin Trust on November 5, 2024 and sell it today you would earn a total of 6,956 from holding Grayscale Bitcoin Trust or generate 641.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Fidelity MSCI Real
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Fidelity MSCI Real |
Grayscale Bitcoin and Fidelity MSCI Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Fidelity MSCI
The main advantage of trading using opposite Grayscale Bitcoin and Fidelity MSCI positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Fidelity MSCI 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 Fidelity MSCI will offset losses from the drop in Fidelity MSCI'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 |
| Fidelity MSCI vs. Fidelity MSCI Utilities | Fidelity MSCI vs. Fidelity MSCI Consumer | Fidelity MSCI vs. Fidelity MSCI Materials | Fidelity MSCI vs. Fidelity MSCI Financials |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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