Correlation Between Grayscale Bitcoin and Gmo Implementation

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

Diversification Opportunities for Grayscale Bitcoin and Gmo Implementation

0.0

Correlation Coefficient

Grayscale Bitcoin  Gmo Implementation

Pay attention - limited upside

The 3 months correlation between Grayscale and Gmo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and Gmo Implementation Fund in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gmo Implementation 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 Gmo Implementation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gmo Implementation has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and Gmo Implementation go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and Gmo Implementation

If you would invest  4,068  in Grayscale Bitcoin Trust on February 8, 2024 and sell it today you would earn a total of  1,543  from holding Grayscale Bitcoin Trust or generate 37.93% 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.  Gmo Implementation Fund

Grayscale Bitcoin Trust

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Bitcoin Trust are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Grayscale Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Gmo Implementation

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Gmo Implementation Fund are ranked lower than 12 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong technical and fundamental indicators, Gmo Implementation 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 Gmo Implementation

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

The idea behind Grayscale Bitcoin Trust and Gmo Implementation Fund 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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.