Correlation Between Grayscale Bitcoin and ProShares Nasdaq

Can any of the company-specific risk be diversified away by investing in both Grayscale Bitcoin and ProShares Nasdaq 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 ProShares Nasdaq 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 ProShares Nasdaq 100 Dorsey, you can compare the effects of market volatilities on Grayscale Bitcoin and ProShares Nasdaq 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 ProShares Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Bitcoin and ProShares Nasdaq.

Diversification Opportunities for Grayscale Bitcoin and ProShares Nasdaq

-0.08

Correlation Coefficient

Grayscale Bitcoin  ProShares Nasdaq

Good diversification

The 3 months correlation between Grayscale and ProShares is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Bitcoin Trust and ProShares Nasdaq 100 Dorsey in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares Nasdaq 100 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 ProShares Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Nasdaq 100 has no effect on the direction of Grayscale Bitcoin i.e., Grayscale Bitcoin and ProShares Nasdaq go up and down completely randomly.

Pair Corralation between Grayscale Bitcoin and ProShares Nasdaq

Given the investment horizon of 90 days Grayscale Bitcoin Trust is expected to under-perform the ProShares Nasdaq. In addition to that, Grayscale Bitcoin is 1.91 times more volatile than ProShares Nasdaq 100 Dorsey. It trades about -0.1 of its total potential returns per unit of risk. ProShares Nasdaq 100 Dorsey is currently generating about 0.11 per unit of volatility. If you would invest  4,588  in ProShares Nasdaq 100 Dorsey on September 11, 2025 and sell it today you would earn a total of  457.00  from holding ProShares Nasdaq 100 Dorsey or generate 9.96% return on investment over 90 days.

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

Grayscale Bitcoin Trust  vs.  ProShares Nasdaq 100 Dorsey

Grayscale Bitcoin Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Grayscale Bitcoin Trust has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Etf's basic indicators remain rather sound which may send shares a bit higher in January 2026. The latest tumult may also be a sign of longer-term up-swing for the fund shareholders.

ProShares Nasdaq 100

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in ProShares Nasdaq 100 Dorsey are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat abnormal basic indicators, ProShares Nasdaq may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Grayscale Bitcoin and ProShares Nasdaq

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

The idea behind Grayscale Bitcoin Trust and ProShares Nasdaq 100 Dorsey 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.