Correlation Between Grayscale Bitcoin and ATHENE

Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and ATHENE 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 ATHENE 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 ATHENE HLDG LTD, you can compare the effects of market volatilities on Grayscale Bitcoin and ATHENE 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 ATHENE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and ATHENE.

Diversification Opportunities for Grayscale Bitcoin and ATHENE

-0.4

Correlation Coefficient

Grayscale Bitcoin  ATHENE

Very good diversification

The 3 months correlation between Grayscale and ATHENE is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and ATHENE HLDG LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ATHENE HLDG LTD 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 ATHENE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ATHENE HLDG LTD has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and ATHENE go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and ATHENE

Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the ATHENE. In addition to that, Grayscale Bitcoin is 10.84 times more volatile than ATHENE HLDG LTD. It trades about -0.02 of its total potential returns per unit of risk. ATHENE HLDG LTD is currently generating about -0.03 per unit of volatility. If you would invest  9,536  in ATHENE HLDG LTD on September 24, 2024 and sell it today you would lose (278.00) from holding ATHENE HLDG LTD or give up 2.92% of portfolio value over 90 days.

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

Grayscale Bitcoin Mini  vs.  ATHENE HLDG LTD

Grayscale Bitcoin Mini

Risk-Adjusted Performance

15 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Bitcoin Mini are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Grayscale Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

ATHENE HLDG LTD

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ATHENE HLDG LTD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest unfluctuating performance, the Bond's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for ATHENE HLDG LTD investors.

Pair Trading with Grayscale Bitcoin and ATHENE

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

The idea behind Grayscale Bitcoin Mini and ATHENE HLDG LTD 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.