Correlation Between Grayscale Bitcoin and Virtus Newfleet
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Virtus Newfleet 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 Virtus Newfleet 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 Virtus Newfleet Multi Sector, you can compare the effects of market volatilities on Grayscale Bitcoin and Virtus Newfleet 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 Virtus Newfleet. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Virtus Newfleet.
Diversification Opportunities for Grayscale Bitcoin and Virtus Newfleet
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grayscale and Virtus is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Virtus Newfleet Multi Sector in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Virtus Newfleet Multi 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 Virtus Newfleet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Virtus Newfleet Multi has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Virtus Newfleet go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Virtus Newfleet
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 13.82 times more return on investment than Virtus Newfleet. However, Grayscale Bitcoin is 13.82 times more volatile than Virtus Newfleet Multi Sector. It trades about 0.14 of its potential returns per unit of risk. Virtus Newfleet Multi Sector is currently generating about 0.11 per unit of risk. If you would invest 803.00 in Grayscale Bitcoin Trust on August 30, 2024 and sell it today you would earn a total of 6,879 from holding Grayscale Bitcoin Trust or generate 856.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Virtus Newfleet Multi Sector
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Virtus Newfleet Multi |
Grayscale Bitcoin and Virtus Newfleet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Virtus Newfleet
The main advantage of trading using opposite Grayscale Bitcoin and Virtus Newfleet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Virtus Newfleet 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 Virtus Newfleet will offset losses from the drop in Virtus Newfleet'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 |
| Virtus Newfleet vs. NuShares Enhanced Yield | Virtus Newfleet vs. Invesco Fundamental Investment | Virtus Newfleet vs. Invesco Global Short |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets |