Correlation Between Grayscale Bitcoin and Matthews International
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Matthews International 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 Matthews International 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 Matthews International Funds, you can compare the effects of market volatilities on Grayscale Bitcoin and Matthews International 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 Matthews International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Matthews International.
Diversification Opportunities for Grayscale Bitcoin and Matthews International
-0.89 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and Matthews is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Matthews International Funds in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Matthews International 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 Matthews International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Matthews International has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Matthews International go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Matthews International
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 3.27 times more return on investment than Matthews International. However, Grayscale Bitcoin is 3.27 times more volatile than Matthews International Funds. It trades about 0.14 of its potential returns per unit of risk. Matthews International Funds is currently generating about -0.02 per unit of risk. If you would invest 833.00 in Grayscale Bitcoin Trust on September 13, 2024 and sell it today you would earn a total of 7,108 from holding Grayscale Bitcoin Trust or generate 853.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 72.53% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Matthews International Funds
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Matthews International |
Grayscale Bitcoin and Matthews International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Matthews International
The main advantage of trading using opposite Grayscale Bitcoin and Matthews International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Matthews International 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 Matthews International will offset losses from the drop in Matthews International'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 |
| Matthews International vs. Freedom Day Dividend | Matthews International vs. Franklin Templeton ETF | Matthews International vs. iShares MSCI China | Matthews International vs. Tidal Trust II |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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