Correlation Between Grayscale Bitcoin and IShares Climate
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and IShares Climate 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 IShares Climate 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 iShares Climate Conscious, you can compare the effects of market volatilities on Grayscale Bitcoin and IShares Climate 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 IShares Climate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and IShares Climate.
Diversification Opportunities for Grayscale Bitcoin and IShares Climate
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grayscale and IShares is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and iShares Climate Conscious in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Climate Conscious 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 IShares Climate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Climate Conscious has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and IShares Climate go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and IShares Climate
Given the investment horizon of 90 days Grayscale Bitcoin is expected to generate 1.09 times less return on investment than IShares Climate. In addition to that, Grayscale Bitcoin is 3.03 times more volatile than iShares Climate Conscious. It trades about 0.08 of its total potential returns per unit of risk. iShares Climate Conscious is currently generating about 0.26 per unit of volatility. If you would invest 7,067 in iShares Climate Conscious on November 9, 2024 and sell it today you would earn a total of 270.00 from holding iShares Climate Conscious or generate 3.82% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. iShares Climate Conscious
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| iShares Climate Conscious |
Grayscale Bitcoin and IShares Climate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and IShares Climate
The main advantage of trading using opposite Grayscale Bitcoin and IShares Climate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, IShares Climate 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 IShares Climate will offset losses from the drop in IShares Climate'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 |
| IShares Climate vs. Freedom Day Dividend | IShares Climate vs. Franklin Templeton ETF | IShares Climate vs. iShares MSCI China | IShares Climate vs. Tidal Trust II |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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