Correlation Between Bitwise Crypto and Grayscale Bitcoin
Can any of the company-specific risk be diversified away by investing in both Bitwise Crypto and Grayscale Bitcoin 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 Bitwise Crypto and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitwise Crypto Industry and Grayscale Bitcoin Mini, you can compare the effects of market volatilities on Bitwise Crypto and Grayscale Bitcoin 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 Bitwise Crypto with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitwise Crypto and Grayscale Bitcoin.
Diversification Opportunities for Bitwise Crypto and Grayscale Bitcoin
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Bitwise and Grayscale is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Bitwise Crypto Industry and Grayscale Bitcoin Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Mini and Bitwise Crypto 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 Bitwise Crypto Industry are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Mini has no effect on the direction of Bitwise Crypto i.e., Bitwise Crypto and Grayscale Bitcoin go up and down completely randomly.
Pair Corralation between Bitwise Crypto and Grayscale Bitcoin
Given the investment horizon of 90 days Bitwise Crypto Industry is expected to generate 1.51 times more return on investment than Grayscale Bitcoin. However, Bitwise Crypto is 1.51 times more volatile than Grayscale Bitcoin Mini. It trades about 0.1 of its potential returns per unit of risk. Grayscale Bitcoin Mini is currently generating about 0.11 per unit of risk. If you would invest 1,466 in Bitwise Crypto Industry on March 23, 2025 and sell it today you would earn a total of 334.00 from holding Bitwise Crypto Industry or generate 22.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitwise Crypto Industry vs. Grayscale Bitcoin Mini
Performance |
| Timeline |
| Bitwise Crypto Industry |
| Grayscale Bitcoin Mini |
Bitwise Crypto and Grayscale Bitcoin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitwise Crypto and Grayscale Bitcoin
The main advantage of trading using opposite Bitwise Crypto and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitwise Crypto position performs unexpectedly, Grayscale Bitcoin 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 Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.| Bitwise Crypto vs. Bitwise 10 Crypto | Bitwise Crypto vs. VanEck Digital Transformation | Bitwise Crypto vs. Global X Blockchain | Bitwise Crypto vs. First Trust Indxx |
| Grayscale Bitcoin vs. Grayscale Funds Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Hashdex Nasdaq Crypto | Grayscale Bitcoin vs. iShares Ethereum Trust |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like |