Correlation Between Grayscale Funds and Transportation Fund

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

By analyzing existing cross correlation between Grayscale Funds Trust and Transportation Fund Investor, you can compare the effects of market volatilities on Grayscale Funds and Transportation Fund 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 Funds with a short position of Transportation Fund. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Funds and Transportation Fund.

Diversification Opportunities for Grayscale Funds and Transportation Fund

-0.16

Correlation Coefficient

Grayscale Funds  Transportation Fund

Good diversification

The 3 months correlation between Grayscale and Transportation is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Funds Trust and Transportation Fund Investor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Transportation Fund and Grayscale Funds 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 Funds Trust are associated (or correlated) with Transportation Fund. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Transportation Fund has no effect on the direction of Grayscale Funds i.e., Grayscale Funds and Transportation Fund go up and down completely randomly.

Pair Corralation between Grayscale Funds and Transportation Fund

Considering the 90-day investment horizon Grayscale Funds Trust is expected to under-perform the Transportation Fund. In addition to that, Grayscale Funds is 2.15 times more volatile than Transportation Fund Investor. It trades about -0.11 of its total potential returns per unit of risk. Transportation Fund Investor is currently generating about 0.1 per unit of volatility. If you would invest  6,567  in Transportation Fund Investor on September 13, 2025 and sell it today you would earn a total of  477.00  from holding Transportation Fund Investor or generate 7.26% return on investment over 90 days.

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

Grayscale Funds Trust  vs.  Transportation Fund Investor

Grayscale Funds Trust

Risk-Adjusted Performance

Weakest

Over the last 90 days Grayscale Funds Trust has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Etf's basic indicators remain fairly strong which may send shares a bit higher in January 2026. The recent confusion may also be a sign of long-lasting up-swing for the Etf traders.

Transportation Fund

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Transportation Fund Investor are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly weak forward indicators, Transportation Fund may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with Grayscale Funds and Transportation Fund

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

The idea behind Grayscale Funds Trust and Transportation Fund Investor 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.