Correlation Between Grayscale Bitcoin and SPDR Gold
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and SPDR Gold 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 SPDR Gold 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 SPDR Gold Shares, you can compare the effects of market volatilities on Grayscale Bitcoin and SPDR Gold 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 SPDR Gold. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and SPDR Gold.
Diversification Opportunities for Grayscale Bitcoin and SPDR Gold
-0.45 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Grayscale and SPDR is -0.45. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and SPDR Gold Shares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SPDR Gold Shares 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 SPDR Gold. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SPDR Gold Shares has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and SPDR Gold go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and SPDR Gold
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to under-perform the SPDR Gold. In addition to that, Grayscale Bitcoin is 1.83 times more volatile than SPDR Gold Shares. It trades about -0.14 of its total potential returns per unit of risk. SPDR Gold Shares is currently generating about 0.2 per unit of volatility. If you would invest 32,559 in SPDR Gold Shares on September 2, 2025 and sell it today you would earn a total of 6,416 from holding SPDR Gold Shares or generate 19.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. SPDR Gold Shares
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| SPDR Gold Shares |
Grayscale Bitcoin and SPDR Gold Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and SPDR Gold
The main advantage of trading using opposite Grayscale Bitcoin and SPDR Gold positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, SPDR Gold 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 SPDR Gold will offset losses from the drop in SPDR Gold's long position.| Grayscale Bitcoin vs. DOJE | Grayscale Bitcoin vs. Grayscale Funds Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Hashdex Nasdaq Crypto |
| SPDR Gold vs. Roundhill Uranium ETF | SPDR Gold vs. MicroSectors Gold 3X | SPDR Gold vs. Franklin Responsibly Sourced | SPDR Gold vs. ProShares Ultra Silver |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| 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 | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |