Correlation Between Grayscale Bitcoin and 191216DK3

Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and 191216DK3 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 191216DK3 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 COCA COLA CO, you can compare the effects of market volatilities on Grayscale Bitcoin and 191216DK3 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 191216DK3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and 191216DK3.

Diversification Opportunities for Grayscale Bitcoin and 191216DK3

-0.29

Correlation Coefficient

Grayscale Bitcoin  191216DK3

Very good diversification

The 3 months correlation between Grayscale and 191216DK3 is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and COCA COLA CO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on COCA A CO 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 191216DK3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of COCA A CO has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and 191216DK3 go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and 191216DK3

Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the 191216DK3. In addition to that, Grayscale Bitcoin is 6.49 times more volatile than COCA COLA CO. It trades about -0.05 of its total potential returns per unit of risk. COCA COLA CO is currently generating about 0.0 per unit of volatility. If you would invest  8,550  in COCA COLA CO on December 30, 2024 and sell it today you would earn a total of  6.00  from holding COCA COLA CO or generate 0.07% return on investment over 90 days.

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

Grayscale Bitcoin Mini  vs.  COCA COLA CO

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.

COCA A CO

Risk-Adjusted Performance

Very Weak

Over the last 90 days COCA COLA CO has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, 191216DK3 is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Grayscale Bitcoin and 191216DK3

The main advantage of trading using opposite Grayscale Bitcoin and 191216DK3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, 191216DK3 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 191216DK3 will offset losses from the drop in 191216DK3's long position.

The idea behind Grayscale Bitcoin Mini and COCA COLA CO 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .