Correlation Between Grayscale Bitcoin and Amplify Transformational

Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Amplify Transformational 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 Amplify Transformational into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Grayscale Bitcoin Mini and Amplify Transformational Data, you can compare the effects of market volatilities on Grayscale Bitcoin and Amplify Transformational 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 Amplify Transformational. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Amplify Transformational.

Diversification Opportunities for Grayscale Bitcoin and Amplify Transformational

0.91

Correlation Coefficient

Grayscale Bitcoin  Amplify Transformational

Almost no diversification

The 3 months correlation between Grayscale and Amplify is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and Amplify Transformational Data in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amplify Transformational 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 Mini are associated (or correlated) with Amplify Transformational. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amplify Transformational has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Amplify Transformational go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and Amplify Transformational

Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to generate 0.97 times more return on investment than Amplify Transformational. However, Grayscale Bitcoin Mini is 1.03 times less risky than Amplify Transformational. It trades about -0.05 of its potential returns per unit of risk. Amplify Transformational Data is currently generating about -0.07 per unit of risk. If you would invest  4,175  in Grayscale Bitcoin Mini on December 30, 2024 and sell it today you would lose (468.00) from holding Grayscale Bitcoin Mini or give up 11.21% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Grayscale Bitcoin Mini  vs.  Amplify Transformational Data

Grayscale Bitcoin Mini

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grayscale Bitcoin Mini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest uncertain performance, the Etf's basic indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the fund shareholders.

Amplify Transformational

Risk-Adjusted Performance

Very Weak

Over the last 90 days Amplify Transformational Data has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unfluctuating performance in the last few months, the Etf's basic indicators remain quite persistent which may send shares a bit higher in April 2025. The latest mess may also be a sign of long-standing up-swing for the ETF venture institutional investors.

Pair Trading with Grayscale Bitcoin and Amplify Transformational

The main advantage of trading using opposite Grayscale Bitcoin and Amplify Transformational positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Amplify Transformational 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 Amplify Transformational will offset losses from the drop in Amplify Transformational's long position.

The idea behind Grayscale Bitcoin Mini and Amplify Transformational Data pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.