Correlation Between Grayscale Bitcoin and TGIF
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and TGIF 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 TGIF 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 TGIF, you can compare the effects of market volatilities on Grayscale Bitcoin and TGIF 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 TGIF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and TGIF.
Diversification Opportunities for Grayscale Bitcoin and TGIF
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and TGIF is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and TGIF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TGIF 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 TGIF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TGIF has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and TGIF go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and TGIF
If you would invest (100.00) in TGIF on November 28, 2024 and sell it today you would earn a total of 100.00 from holding TGIF or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. TGIF
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| TGIF |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
Grayscale Bitcoin and TGIF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and TGIF
The main advantage of trading using opposite Grayscale Bitcoin and TGIF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, TGIF 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 TGIF will offset losses from the drop in TGIF'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 |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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