Correlation Between Grayscale Bitcoin and MARTIN

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

Diversification Opportunities for Grayscale Bitcoin and MARTIN

-0.69

Correlation Coefficient

Grayscale Bitcoin  MARTIN

Excellent diversification

The 3 months correlation between Grayscale and MARTIN is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Mini and MARTIN MARIETTA MATLS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MARTIN MARIETTA MATLS 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 MARTIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MARTIN MARIETTA MATLS has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and MARTIN go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and MARTIN

Considering the 90-day investment horizon Grayscale Bitcoin Mini is expected to under-perform the MARTIN. In addition to that, Grayscale Bitcoin is 7.37 times more volatile than MARTIN MARIETTA MATLS. It trades about -0.01 of its total potential returns per unit of risk. MARTIN MARIETTA MATLS is currently generating about 0.02 per unit of volatility. If you would invest  9,366  in MARTIN MARIETTA MATLS on September 24, 2024 and sell it today you would earn a total of  181.00  from holding MARTIN MARIETTA MATLS or generate 1.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	62.85%
Values	Daily Returns

Grayscale Bitcoin Mini  vs.  MARTIN MARIETTA MATLS

Grayscale Bitcoin Mini

Risk-Adjusted Performance

15 of 100

Good

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.

MARTIN MARIETTA MATLS

Risk-Adjusted Performance

0 of 100

Very Weak

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

Pair Trading with Grayscale Bitcoin and MARTIN

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

The idea behind Grayscale Bitcoin Mini and MARTIN MARIETTA MATLS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.