Correlation Between Hashdex Nasdaq and Grayscale Funds
Can any of the company-specific risk be diversified away by investing in both Hashdex Nasdaq 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 Hashdex Nasdaq and Grayscale Funds into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hashdex Nasdaq Crypto and Grayscale Funds Trust, you can compare the effects of market volatilities on Hashdex Nasdaq 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 Hashdex Nasdaq with a short position of Grayscale Funds. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hashdex Nasdaq and Grayscale Funds.
Diversification Opportunities for Hashdex Nasdaq and Grayscale Funds
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hashdex and Grayscale is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Hashdex Nasdaq Crypto 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 Hashdex Nasdaq 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 Hashdex Nasdaq Crypto 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 Hashdex Nasdaq i.e., Hashdex Nasdaq and Grayscale Funds go up and down completely randomly.
Pair Corralation between Hashdex Nasdaq and Grayscale Funds
Given the investment horizon of 90 days Hashdex Nasdaq Crypto is expected to generate 0.62 times more return on investment than Grayscale Funds. However, Hashdex Nasdaq Crypto is 1.61 times less risky than Grayscale Funds. It trades about 0.1 of its potential returns per unit of risk. Grayscale Funds Trust is currently generating about 0.05 per unit of risk. If you would invest 2,276 in Hashdex Nasdaq Crypto on March 23, 2025 and sell it today you would earn a total of 352.00 from holding Hashdex Nasdaq Crypto or generate 15.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hashdex Nasdaq Crypto vs. Grayscale Funds Trust
Performance |
| Timeline |
| Hashdex Nasdaq Crypto |
| Grayscale Funds Trust |
Hashdex Nasdaq and Grayscale Funds Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hashdex Nasdaq and Grayscale Funds
The main advantage of trading using opposite Hashdex Nasdaq and Grayscale Funds positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hashdex Nasdaq 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.| Hashdex Nasdaq vs. Grayscale Funds Trust | Hashdex Nasdaq vs. ProShares Trust | Hashdex Nasdaq vs. iShares Ethereum Trust | Hashdex Nasdaq vs. ProShares Trust |
| Grayscale Funds vs. ProShares Trust | Grayscale Funds vs. Hashdex Nasdaq Crypto | Grayscale Funds vs. iShares Ethereum Trust | Grayscale Funds vs. ProShares 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 Transaction History module to view history of all your transactions and understand their impact on performance.
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