Grayscale Bitcoin Correlations

GBTC
 Stock
  

USD 8.84  0.15  1.73%   

The correlation of Grayscale Bitcoin is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Grayscale Bitcoin moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Grayscale Bitcoin Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Please check Risk vs Return Analysis.
  
The ability to find closely correlated positions to Grayscale Bitcoin could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Grayscale Bitcoin when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Grayscale Bitcoin - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Grayscale Bitcoin Trust to buy it.

Moving together with Grayscale Bitcoin

+0.68AMZNAmazon IncPairCorr
+0.69NYMXNymox Pharmaceutical CorpPairCorr
+0.78SKYXSKYX Platforms CorpPairCorr

Moving against Grayscale Bitcoin

-0.72BRK-ABerkshire HathawayPairCorr
-0.69JNJJohnson JohnsonPairCorr
-0.52TATT IncPairCorr
-0.7WMTWalmartPairCorr
-0.7HDHome DepotPairCorr
-0.68IBMInternational BusinessPairCorr

Related Correlations

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Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
JPMT
JPMA
XOMMRK
MRKJPM
XOMJPM
JPMTWTR
  
High negative correlations   
MRKMSFT
XOMMSFT
MRKUBER
CRMTWTR
MSFTTWTR
XOMUBER

Grayscale Bitcoin Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between Grayscale OTC Stock performing well and Grayscale Bitcoin company doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze Grayscale Bitcoin's multiple risk-adjusted performance indicators. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
TWTR 1.73  0.48  0.18  2.46  1.73  0.13 (1.84)  3.56 (2.97)  27.10 
MSFT 1.81 (0.12)  0.00 (0.02)  0.00 (0.0384)  0.00  3.92 (3.54)  11.64 
UBER 2.79 (0.01)  0.01  0.06  3.22  0.0048 (3.38)  8.60 (5.58)  19.67 
F 1.95 (0.20)  0.00 (0.07)  0.00 (0.06)  0.00  2.75 (5.14)  14.93 
T 1.27  0.11  0.06  0.21  1.22  0.05 (1.43)  2.54 (2.11)  9.29 
A 1.71  0.22  0.13  0.24  1.62  0.11 (2.06)  3.98 (2.97)  11.04 
CRM 2.20 (0.06) (0.01)  0.02  2.64 (0.013) (2.24)  4.31 (4.29)  14.31 
JPM 1.49  0.24  0.15  0.29  1.27  0.13 (1.60)  4.20 (2.15)  7.57 
MRK 1.03  0.34  0.23  1.09  0.89  0.22 (1.22)  2.44 (1.71)  7.38 
XOM 1.62  0.12  0.06  0.20  1.90  0.06 (1.68)  3.65 (3.00)  9.75 

Be your own money manager

Our tools can tell you how much better you can do entering a position in Grayscale Bitcoin without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Invested in Grayscale Bitcoin Trust?

The danger of trading Grayscale Bitcoin Trust is mainly related to its market volatility and company specific events. As an investor, you must understand the concept of risk-adjusted return before you start trading. The most common way to measure the risk of Grayscale Bitcoin is by using the Sharpe ratio. The ratio expresses how much excess return you acquire for the extra volatility you endure for holding a more risker asset than Grayscale Bitcoin. The Shape ratio is calculated by using standard deviation and excess return to determine reward per unit of risk. To understand how volatile Grayscale Bitcoin Trust is, you must compare it to a benchmark. Traditionally, the risk-free rate of return is the rate of return on the shortest-dated U.S. Treasury, such as a 3-year bond.
Please check Risk vs Return Analysis. You can also try Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Complementary Tools for analysis

When running Grayscale Bitcoin Trust price analysis, check to measure Grayscale Bitcoin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Grayscale Bitcoin is operating at the current time. Most of Grayscale Bitcoin's value examination focuses on studying past and present price action to predict the probability of Grayscale Bitcoin's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Grayscale Bitcoin's price. Additionally, you may evaluate how the addition of Grayscale Bitcoin to your portfolios can decrease your overall portfolio volatility.
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Please note, there is a significant difference between Grayscale Bitcoin's value and its price as these two are different measures arrived at by different means. Investors typically determine Grayscale Bitcoin value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Grayscale Bitcoin's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.