Correlation Between Global X and Grayscale Bitcoin

Can any of the company-specific risk be diversified away by investing in both Global X and Grayscale Bitcoin 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 Global X and Grayscale Bitcoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Global X Blockchain and Grayscale Bitcoin Mini, you can compare the effects of market volatilities on Global X and Grayscale Bitcoin 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 Global X with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Global X and Grayscale Bitcoin.

Diversification Opportunities for Global X and Grayscale Bitcoin

0.96

Correlation Coefficient

Global X  Grayscale Bitcoin

Almost no diversification

The 3 months correlation between Global and Grayscale is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Global X Blockchain and Grayscale Bitcoin Mini in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grayscale Bitcoin Mini and Global X 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 Global X Blockchain are associated (or correlated) with Grayscale Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grayscale Bitcoin Mini has no effect on the direction of Global X i.e., Global X and Grayscale Bitcoin go up and down completely randomly.

Pair Corralation between Global X and Grayscale Bitcoin

Given the investment horizon of 90 days Global X Blockchain is expected to generate 1.29 times more return on investment than Grayscale Bitcoin. However, Global X is 1.29 times more volatile than Grayscale Bitcoin Mini. It trades about 0.17 of its potential returns per unit of risk. Grayscale Bitcoin Mini is currently generating about 0.15 per unit of risk. If you would invest  5,765  in Global X Blockchain on May 5, 2025 and sell it today you would earn a total of  1,704  from holding Global X Blockchain or generate 29.56% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Global X Blockchain  vs.  Grayscale Bitcoin Mini

Global X Blockchain

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Global X Blockchain are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, Global X unveiled solid returns over the last few months and may actually be approaching a breakup point.

Grayscale Bitcoin Mini

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Grayscale Bitcoin Mini are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak basic indicators, Grayscale Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Global X and Grayscale Bitcoin

The main advantage of trading using opposite Global X and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Global X position performs unexpectedly, Grayscale Bitcoin 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 Bitcoin will offset losses from the drop in Grayscale Bitcoin's long position.

The idea behind Global X Blockchain and Grayscale Bitcoin Mini pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.