Correlation Between Disney and Grayscale Bitcoin

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

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

Diversification Opportunities for Disney and Grayscale Bitcoin

0.77

Correlation Coefficient

Disney  Grayscale Bitcoin

Poor diversification

The 3 months correlation between Disney and Grayscale is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Walt Disney 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 Disney 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 Walt Disney 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 Disney i.e., Disney and Grayscale Bitcoin go up and down completely randomly.

Pair Corralation between Disney and Grayscale Bitcoin

Considering the 90-day investment horizon Walt Disney is expected to generate 0.89 times more return on investment than Grayscale Bitcoin. However, Walt Disney is 1.12 times less risky than Grayscale Bitcoin. It trades about 0.22 of its potential returns per unit of risk. Grayscale Bitcoin Mini is currently generating about 0.16 per unit of risk. If you would invest  9,178  in Walt Disney on May 6, 2025 and sell it today you would earn a total of  2,481  from holding Walt Disney or generate 27.03% return on investment over 90 days.

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

Walt Disney  vs.  Grayscale Bitcoin Mini

Walt Disney

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Walt Disney are ranked lower than 17 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain forward indicators, Disney 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 uncertain basic indicators, Grayscale Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Disney and Grayscale Bitcoin

The main advantage of trading using opposite Disney and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Disney 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 Walt Disney 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.