Correlation Between ATT and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both ATT 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 ATT and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ATT Inc and Grayscale Bitcoin Mini, you can compare the effects of market volatilities on ATT 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 ATT with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of ATT and Grayscale Bitcoin.
Diversification Opportunities for ATT and Grayscale Bitcoin
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ATT and Grayscale is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding ATT Inc and Grayscale Bitcoin Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Mini and ATT 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 ATT Inc 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 Mini has no effect on the direction of ATT i.e., ATT and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between ATT and Grayscale Bitcoin
Taking into account the 90-day investment horizon ATT is expected to generate 5.66 times less return on investment than Grayscale Bitcoin. But when comparing it to its historical volatility, ATT Inc is 4.1 times less risky than Grayscale Bitcoin. It trades about 0.24 of its potential returns per unit of risk. Grayscale Bitcoin Mini is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 3,185 in Grayscale Bitcoin Mini on August 31, 2024 and sell it today you would earn a total of 1,108 from holding Grayscale Bitcoin Mini or generate 34.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ATT Inc vs. Grayscale Bitcoin Mini
Performance |
| Timeline |
| ATT Inc |
| Grayscale Bitcoin Mini |
ATT and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ATT and Grayscale Bitcoin
The main advantage of trading using opposite ATT and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ATT 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.| ATT vs. RLJ Lodging Trust | ATT vs. Aquagold International | ATT vs. Stepstone Group | ATT vs. Morningstar Unconstrained Allocation |
| Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. iShares Ethereum Trust | Grayscale Bitcoin vs. ProShares Trust | 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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