Correlation Between ITV PLC and Grayscale Decentralized

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both ITV PLC and Grayscale Decentralized 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 ITV PLC and Grayscale Decentralized into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between ITV PLC ADR and Grayscale Decentralized Finance, you can compare the effects of market volatilities on ITV PLC and Grayscale Decentralized 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 ITV PLC with a short position of Grayscale Decentralized. Check out your portfolio center. Please also check ongoing floating volatility patterns of ITV PLC and Grayscale Decentralized.

Diversification Opportunities for ITV PLC and Grayscale Decentralized

ITVGrayscaleDiversified AwayITVGrayscaleDiversified Away100%
0.04
  Correlation Coefficient

Significant diversification

The 3 months correlation between ITV and Grayscale is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding ITV PLC ADR and Grayscale Decentralized Financ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Decentralized and ITV PLC 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 ITV PLC ADR are associated (or correlated) with Grayscale Decentralized. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Decentralized has no effect on the direction of ITV PLC i.e., ITV PLC and Grayscale Decentralized go up and down completely randomly.

Pair Corralation between ITV PLC and Grayscale Decentralized

Assuming the 90 days horizon ITV PLC is expected to generate 44.2 times less return on investment than Grayscale Decentralized. But when comparing it to its historical volatility, ITV PLC ADR is 59.94 times less risky than Grayscale Decentralized. It trades about 0.16 of its potential returns per unit of risk. Grayscale Decentralized Finance is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  2,730  in Grayscale Decentralized Finance on November 18, 2024 and sell it today you would earn a total of  80.00  from holding Grayscale Decentralized Finance or generate 2.93% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy98.39%
ValuesDaily Returns

ITV PLC ADR  vs.  Grayscale Decentralized Financ

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb 0500,0001,000,0001,500,0002,000,0002,500,0003,000,000
JavaScript chart by amCharts 3.21.15ITVPY DEFG
       Timeline  
ITV PLC ADR 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in ITV PLC ADR are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, ITV PLC showed solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb88.599.5
Grayscale Decentralized 

Risk-Adjusted Performance

OK

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Decentralized Finance are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. Despite nearly uncertain technical and fundamental indicators, Grayscale Decentralized reported solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb1001,00010,000100,000

ITV PLC and Grayscale Decentralized Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-6.49-4.86-3.23-1.60.01.713.445.186.928.65 0.020.040.060.08
JavaScript chart by amCharts 3.21.15ITVPY DEFG
       Returns  

Pair Trading with ITV PLC and Grayscale Decentralized

The main advantage of trading using opposite ITV PLC and Grayscale Decentralized positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ITV PLC position performs unexpectedly, Grayscale Decentralized 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 Grayscale Decentralized will offset losses from the drop in Grayscale Decentralized's long position.
The idea behind ITV PLC ADR and Grayscale Decentralized Finance 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.
Check out your portfolio center.
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

Other Complementary Tools

Latest Portfolios
Quick portfolio dashboard that showcases your latest portfolios
Cryptocurrency Center
Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency
Portfolio Diagnostics
Use generated alerts and portfolio events aggregator to diagnose current holdings
Share Portfolio
Track or share privately all of your investments from the convenience of any device
Insider Screener
Find insiders across different sectors to evaluate their impact on performance