Correlation Between Grayscale Zcash and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both Grayscale Zcash 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 Grayscale Zcash and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Zcash Trust and Grayscale Bitcoin Cash, you can compare the effects of market volatilities on Grayscale Zcash 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 Grayscale Zcash with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Zcash and Grayscale Bitcoin.
Diversification Opportunities for Grayscale Zcash and Grayscale Bitcoin
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grayscale and Grayscale is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Zcash Trust 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 Grayscale Zcash 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 Zcash Trust 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 Grayscale Zcash i.e., Grayscale Zcash and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between Grayscale Zcash and Grayscale Bitcoin
Given the investment horizon of 90 days Grayscale Zcash Trust is expected to generate 1.33 times more return on investment than Grayscale Bitcoin. However, Grayscale Zcash is 1.33 times more volatile than Grayscale Bitcoin Cash. It trades about -0.18 of its potential returns per unit of risk. Grayscale Bitcoin Cash is currently generating about -0.27 per unit of risk. If you would invest 713.00 in Grayscale Zcash Trust on October 12, 2024 and sell it today you would lose (165.00) from holding Grayscale Zcash Trust or give up 23.14% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Zcash Trust vs. Grayscale Bitcoin Cash
Performance |
| Timeline |
| Grayscale Zcash Trust |
| Grayscale Bitcoin Cash |
Grayscale Zcash and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Zcash and Grayscale Bitcoin
The main advantage of trading using opposite Grayscale Zcash and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Zcash 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.| Grayscale Zcash vs. Grayscale Stellar Lumens | Grayscale Zcash vs. Zencash Investment Trust | Grayscale Zcash vs. Osprey Solana Trust | Grayscale Zcash vs. Discount Print USA |
| 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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