Correlation Between NEOS Nasdaq and Grayscale Bitcoin

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

By analyzing existing cross correlation between NEOS Nasdaq 100 and Grayscale Bitcoin Mini, you can compare the effects of market volatilities on NEOS Nasdaq 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 NEOS Nasdaq with a short position of Grayscale Bitcoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEOS Nasdaq and Grayscale Bitcoin.

Diversification Opportunities for NEOS Nasdaq and Grayscale Bitcoin

-0.04

Correlation Coefficient

NEOS Nasdaq  Grayscale Bitcoin

Good diversification

The 3 months correlation between NEOS and Grayscale is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding NEOS Nasdaq 100 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 NEOS Nasdaq 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 NEOS Nasdaq 100 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 NEOS Nasdaq i.e., NEOS Nasdaq and Grayscale Bitcoin go up and down completely randomly.

Pair Corralation between NEOS Nasdaq and Grayscale Bitcoin

Given the investment horizon of 90 days NEOS Nasdaq 100 is expected to generate 0.32 times more return on investment than Grayscale Bitcoin. However, NEOS Nasdaq 100 is 3.1 times less risky than Grayscale Bitcoin. It trades about 0.19 of its potential returns per unit of risk. Grayscale Bitcoin Mini is currently generating about -0.03 per unit of risk. If you would invest  5,094  in NEOS Nasdaq 100 on July 29, 2025 and sell it today you would earn a total of  452.00  from holding NEOS Nasdaq 100 or generate 8.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

NEOS Nasdaq 100  vs.  Grayscale Bitcoin Mini

NEOS Nasdaq 100

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in NEOS Nasdaq 100 are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak basic indicators, NEOS Nasdaq may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Grayscale Bitcoin Mini

Risk-Adjusted Performance

Weakest

Over the last 90 days Grayscale Bitcoin Mini has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Grayscale Bitcoin is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with NEOS Nasdaq and Grayscale Bitcoin

The main advantage of trading using opposite NEOS Nasdaq and Grayscale Bitcoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEOS Nasdaq 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 NEOS Nasdaq 100 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.

Check out your portfolio center.

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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.