Correlation Between Grayscale Bitcoin and Kelly Strategic
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Kelly Strategic 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 Kelly Strategic 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 Kelly Strategic Management, you can compare the effects of market volatilities on Grayscale Bitcoin and Kelly Strategic 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 Kelly Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Kelly Strategic.
Diversification Opportunities for Grayscale Bitcoin and Kelly Strategic
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grayscale and Kelly is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Kelly Strategic Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kelly Strategic Mana 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 Kelly Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kelly Strategic Mana has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Kelly Strategic go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Kelly Strategic
If you would invest 5,501 in Grayscale Bitcoin Trust on September 2, 2024 and sell it today you would earn a total of 2,208 from holding Grayscale Bitcoin Trust or generate 40.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Kelly Strategic Management
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Kelly Strategic Mana |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and Kelly Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Kelly Strategic
The main advantage of trading using opposite Grayscale Bitcoin and Kelly Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Kelly Strategic 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 Kelly Strategic will offset losses from the drop in Kelly Strategic'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 |
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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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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