Correlation Between Grayscale Bitcoin and Berkshire Hathaway
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and Berkshire Hathaway 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 Berkshire Hathaway into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Bitcoin Trust and Berkshire Hathaway, you can compare the effects of market volatilities on Grayscale Bitcoin and Berkshire Hathaway 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 Berkshire Hathaway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and Berkshire Hathaway.
Diversification Opportunities for Grayscale Bitcoin and Berkshire Hathaway
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and Berkshire is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Berkshire Hathaway in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Berkshire Hathaway 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 Trust are associated (or correlated) with Berkshire Hathaway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Berkshire Hathaway has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Berkshire Hathaway go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and Berkshire Hathaway
If you would invest 4,641 in Grayscale Bitcoin Trust on January 20, 2024 and sell it today you would earn a total of 1,017 from holding Grayscale Bitcoin Trust or generate 21.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. Berkshire Hathaway
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| Berkshire Hathaway |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Grayscale Bitcoin and Berkshire Hathaway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and Berkshire Hathaway
The main advantage of trading using opposite Grayscale Bitcoin and Berkshire Hathaway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, Berkshire Hathaway 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 Berkshire Hathaway will offset losses from the drop in Berkshire Hathaway's long position.| Grayscale Bitcoin vs. Grayscale Ethereum Trust | Grayscale Bitcoin vs. Riot Blockchain | Grayscale Bitcoin vs. Marathon Digital Holdings | Grayscale Bitcoin vs. Coinbase Global |
| Berkshire Hathaway vs. Reservoir Media | Berkshire Hathaway vs. Freedom Internet Group | Berkshire Hathaway vs. Stratasys | Berkshire Hathaway vs. Artisan Partners Asset |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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