Correlation Between Grayscale Bitcoin and REX IncomeMax
Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and REX IncomeMax 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 REX IncomeMax 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 REX IncomeMax Option, you can compare the effects of market volatilities on Grayscale Bitcoin and REX IncomeMax 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 REX IncomeMax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and REX IncomeMax.
Diversification Opportunities for Grayscale Bitcoin and REX IncomeMax
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Grayscale and REX is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and REX IncomeMax Option in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX IncomeMax Option 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 REX IncomeMax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX IncomeMax Option has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and REX IncomeMax go up and down completely randomly.
Pair Corralation between Grayscale Bitcoin and REX IncomeMax
Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to generate 0.64 times more return on investment than REX IncomeMax. However, Grayscale Bitcoin Trust is 1.57 times less risky than REX IncomeMax. It trades about -0.11 of its potential returns per unit of risk. REX IncomeMax Option is currently generating about -0.25 per unit of risk. If you would invest 8,804 in Grayscale Bitcoin Trust on September 8, 2025 and sell it today you would lose (1,814) from holding Grayscale Bitcoin Trust or give up 20.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 40.0% |
| Values | Daily Returns |
Grayscale Bitcoin Trust vs. REX IncomeMax Option
Performance |
| Timeline |
| Grayscale Bitcoin Trust |
| REX IncomeMax Option |
Grayscale Bitcoin and REX IncomeMax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Bitcoin and REX IncomeMax
The main advantage of trading using opposite Grayscale Bitcoin and REX IncomeMax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Bitcoin position performs unexpectedly, REX IncomeMax 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 REX IncomeMax will offset losses from the drop in REX IncomeMax's long position.| Grayscale Bitcoin vs. DOJE | Grayscale Bitcoin vs. Grayscale Funds Trust | Grayscale Bitcoin vs. ProShares Trust | Grayscale Bitcoin vs. Hashdex Nasdaq Crypto |
| REX IncomeMax vs. Strategy Shares | REX IncomeMax vs. Freedom Day Dividend | REX IncomeMax vs. Franklin Templeton ETF | REX IncomeMax vs. iShares MSCI China |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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