Correlation Between Goldman Sachs and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both Goldman Sachs and Grayscale Bitcoin 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 Goldman Sachs and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Goldman Sachs Group and Grayscale Bitcoin Cash, you can compare the effects of market volatilities on Goldman Sachs and Grayscale Bitcoin 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 Goldman Sachs with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goldman Sachs and Grayscale Bitcoin.
Diversification Opportunities for Goldman Sachs and Grayscale Bitcoin
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Goldman and Grayscale is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Goldman Sachs Group and Grayscale Bitcoin Cash in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Cash and Goldman Sachs 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 Goldman Sachs Group are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Cash has no effect on the direction of Goldman Sachs i.e., Goldman Sachs and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between Goldman Sachs and Grayscale Bitcoin
Allowing for the 90-day total investment horizon Goldman Sachs is expected to generate 6.25 times less return on investment than Grayscale Bitcoin. But when comparing it to its historical volatility, Goldman Sachs Group is 5.19 times less risky than Grayscale Bitcoin. It trades about 0.08 of its potential returns per unit of risk. Grayscale Bitcoin Cash is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 56.00 in Grayscale Bitcoin Cash on August 30, 2024 and sell it today you would earn a total of 569.00 from holding Grayscale Bitcoin Cash or generate 1016.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goldman Sachs Group vs. Grayscale Bitcoin Cash
Performance |
| Timeline |
| Goldman Sachs Group |
| Grayscale Bitcoin Cash |
Goldman Sachs and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goldman Sachs and Grayscale Bitcoin
The main advantage of trading using opposite Goldman Sachs and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goldman Sachs position performs unexpectedly, Grayscale Bitcoin 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 Grayscale Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.| Goldman Sachs vs. Morgan Stanley | Goldman Sachs vs. JPMorgan Chase Co | Goldman Sachs vs. Wells Fargo | Goldman Sachs vs. Citigroup |
| Grayscale Bitcoin vs. Grayscale Litecoin Trust | Grayscale Bitcoin vs. Grayscale Digital Large | Grayscale Bitcoin vs. Bitwise 10 Crypto | Grayscale Bitcoin vs. Grayscale Ethereum 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |