Correlation Between Grayscale Bitcoin and Touchstone ETF
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Touchstone ETF 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 ETF 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 ETF Trust, you can compare the effects of market volatilities on Grayscale Bitcoin and Touchstone ETF 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 ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Touchstone ETF.
Diversification Opportunities for Grayscale Bitcoin and Touchstone ETF
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grayscale and Touchstone is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Touchstone ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Touchstone ETF Trust 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 ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Touchstone ETF Trust has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Touchstone ETF go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Touchstone ETF
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 29.14 times more return on investment than Touchstone ETF. However, Grayscale Bitcoin is 29.14 times more volatile than Touchstone ETF Trust. It trades about 0.11 of its potential returns per unit of risk. Touchstone ETF Trust is currently generating about -0.09 per unit of risk. If you would invest 7,633 in Grayscale Bitcoin Trust on October 9, 2024 and sell it today you would earn a total of 471.00 from holding Grayscale Bitcoin Trust or generate 6.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Touchstone ETF Trust
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Touchstone ETF Trust |
Grayscale Bitcoin and Touchstone ETF Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Touchstone ETF
The main advantage of trading using opposite Grayscale Bitcoin and Touchstone ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Touchstone ETF 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 ETF will offset losses from the drop in Touchstone ETF'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 ETF vs. Valued Advisers Trust | Touchstone ETF vs. Columbia Diversified Fixed | Touchstone ETF vs. Principal Exchange Traded Funds | Touchstone ETF vs. Doubleline Etf Trust |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios |