Correlation Between Grayscale Ethereum and Bondbloxx ETF

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

By analyzing existing cross correlation between Grayscale Ethereum Mini and Bondbloxx ETF Trust, you can compare the effects of market volatilities on Grayscale Ethereum and Bondbloxx ETF 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 Ethereum with a short position of Bondbloxx ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and Bondbloxx ETF.

Diversification Opportunities for Grayscale Ethereum and Bondbloxx ETF

-0.95

Correlation Coefficient

Grayscale Ethereum  Bondbloxx ETF

Pay attention - limited upside

The 3 months correlation between Grayscale and Bondbloxx is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and Bondbloxx ETF Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bondbloxx ETF Trust and Grayscale Ethereum 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 Ethereum Mini are associated (or correlated) with Bondbloxx ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bondbloxx ETF Trust has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and Bondbloxx ETF go up and down completely randomly.

Pair Corralation between Grayscale Ethereum and Bondbloxx ETF

Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to under-perform the Bondbloxx ETF. In addition to that, Grayscale Ethereum is 193.49 times more volatile than Bondbloxx ETF Trust. It trades about -0.19 of its total potential returns per unit of risk. Bondbloxx ETF Trust is currently generating about 0.71 per unit of volatility. If you would invest  4,983  in Bondbloxx ETF Trust on December 30, 2024 and sell it today you would earn a total of  52.00  from holding Bondbloxx ETF Trust or generate 1.04% return on investment over 90 days.

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

Grayscale Ethereum Mini  vs.  Bondbloxx ETF Trust

Grayscale Ethereum Mini

Risk-Adjusted Performance

Very Weak

Over the last 90 days Grayscale Ethereum Mini has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Bondbloxx ETF Trust

Risk-Adjusted Performance

Market Crasher

Compared to the overall equity markets, risk-adjusted returns on investments in Bondbloxx ETF Trust are ranked lower than 56 (%) of all global equities and portfolios over the last 90 days. Despite nearly stable essential indicators, Bondbloxx ETF is not utilizing all of its potentials. The recent stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Grayscale Ethereum and Bondbloxx ETF

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

The idea behind Grayscale Ethereum Mini and Bondbloxx ETF Trust 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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.