Correlation Between BTCI and Grayscale Funds
Can any of the company-specific risk be diversified away by investing in both BTCI and Grayscale Funds 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 BTCI and Grayscale Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTCI and Grayscale Funds Trust, you can compare the effects of market volatilities on BTCI and Grayscale Funds 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 BTCI with a short position of Grayscale Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCI and Grayscale Funds.
Diversification Opportunities for BTCI and Grayscale Funds
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTCI and Grayscale is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding BTCI and Grayscale Funds Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Funds Trust and BTCI 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 BTCI are associated (or correlated) with Grayscale Funds. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Funds Trust has no effect on the direction of BTCI i.e., BTCI and Grayscale Funds go up and down completely randomly.
Pair Corralation between BTCI and Grayscale Funds
Given the investment horizon of 90 days BTCI is expected to generate 1.01 times more return on investment than Grayscale Funds. However, BTCI is 1.01 times more volatile than Grayscale Funds Trust. It trades about -0.12 of its potential returns per unit of risk. Grayscale Funds Trust is currently generating about -0.15 per unit of risk. If you would invest 5,813 in BTCI on October 9, 2025 and sell it today you would lose (1,139) from holding BTCI or give up 19.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTCI vs. Grayscale Funds Trust
Performance |
| Timeline |
| BTCI |
| Grayscale Funds Trust |
BTCI and Grayscale Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTCI and Grayscale Funds
The main advantage of trading using opposite BTCI and Grayscale Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTCI position performs unexpectedly, Grayscale Funds 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 Funds will offset losses from the drop in Grayscale Funds' long position.| BTCI vs. NEOS Ethereum High | BTCI vs. Grayscale Ethereum Covered | BTCI vs. Defiance Leveraged Long | BTCI vs. Amplify Ethereum 3 |
| Grayscale Funds vs. Sp Midcap 400 | Grayscale Funds vs. Transportation Fund Investor | Grayscale Funds vs. Retailing Fund Investor | Grayscale Funds vs. SMART Earnings Growth |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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