Correlation Between Grayscale Bitcoin and Touchstone Strategic
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Touchstone 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 Touchstone 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 Touchstone Strategic Income, you can compare the effects of market volatilities on Grayscale Bitcoin and Touchstone 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 Touchstone Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Touchstone Strategic.
Diversification Opportunities for Grayscale Bitcoin and Touchstone Strategic
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and Touchstone is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Touchstone Strategic Income in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone Strategic 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 Touchstone Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone Strategic has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Touchstone Strategic go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Touchstone Strategic
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 15.61 times more return on investment than Touchstone Strategic. However, Grayscale Bitcoin is 15.61 times more volatile than Touchstone Strategic Income. It trades about 0.38 of its potential returns per unit of risk. Touchstone Strategic Income is currently generating about 0.17 per unit of risk. If you would invest 5,561 in Grayscale Bitcoin Trust on September 1, 2024 and sell it today you would earn a total of 2,148 from holding Grayscale Bitcoin Trust or generate 38.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Touchstone Strategic Income
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Touchstone Strategic |
Grayscale Bitcoin and Touchstone Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Touchstone Strategic
The main advantage of trading using opposite Grayscale Bitcoin and Touchstone Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Touchstone 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 Touchstone Strategic will offset losses from the drop in Touchstone 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 |
| Touchstone Strategic vs. BlackRock High Yield | Touchstone Strategic vs. Hartford Short Duration | Touchstone Strategic vs. SSGA Active Trust | Touchstone Strategic vs. Aquagold International |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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