Correlation Between Grayscale Bitcoin and AllianzIM Equity
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and AllianzIM Equity 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 AllianzIM Equity 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 AllianzIM Equity Buffer15, you can compare the effects of market volatilities on Grayscale Bitcoin and AllianzIM Equity 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 AllianzIM Equity. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and AllianzIM Equity.
Diversification Opportunities for Grayscale Bitcoin and AllianzIM Equity
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grayscale and AllianzIM is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and AllianzIM Equity Buffer15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AllianzIM Equity Buffer15 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 AllianzIM Equity. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AllianzIM Equity Buffer15 has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and AllianzIM Equity go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and AllianzIM Equity
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 6.61 times more return on investment than AllianzIM Equity. However, Grayscale Bitcoin is 6.61 times more volatile than AllianzIM Equity Buffer15. It trades about 0.3 of its potential returns per unit of risk. AllianzIM Equity Buffer15 is currently generating about 0.14 per unit of risk. If you would invest 5,538 in Grayscale Bitcoin Trust on August 29, 2024 and sell it today you would earn a total of 1,679 from holding Grayscale Bitcoin Trust or generate 30.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. AllianzIM Equity Buffer15
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| AllianzIM Equity Buffer15 |
Grayscale Bitcoin and AllianzIM Equity Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and AllianzIM Equity
The main advantage of trading using opposite Grayscale Bitcoin and AllianzIM Equity positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, AllianzIM Equity 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 AllianzIM Equity will offset losses from the drop in AllianzIM Equity'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 |
| AllianzIM Equity vs. FT Vest Equity | AllianzIM Equity vs. Northern Lights | AllianzIM Equity vs. Dimensional International High | AllianzIM Equity vs. First Trust Exchange Traded |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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