Correlation Between 21Shares Ethereum and WisdomTree Ethereum
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By analyzing existing cross correlation between 21Shares Ethereum Staking and WisdomTree Ethereum ETC, you can compare the effects of market volatilities on 21Shares Ethereum and WisdomTree Ethereum 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 21Shares Ethereum with a short position of WisdomTree Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of 21Shares Ethereum and WisdomTree Ethereum.
Diversification Opportunities for 21Shares Ethereum and WisdomTree Ethereum
0.99 | Correlation Coefficient |
No risk reduction
The 3 months correlation between 21Shares and WisdomTree is 0.99. Overlapping area represents the amount of risk that can be diversified away by holding 21Shares Ethereum Staking and WisdomTree Ethereum ETC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on WisdomTree Ethereum ETC and 21Shares Ethereum 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 21Shares Ethereum Staking are associated (or correlated) with WisdomTree Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of WisdomTree Ethereum ETC has no effect on the direction of 21Shares Ethereum i.e., 21Shares Ethereum and WisdomTree Ethereum go up and down completely randomly.
Pair Corralation between 21Shares Ethereum and WisdomTree Ethereum
Assuming the 90 days trading horizon 21Shares Ethereum Staking is expected to under-perform the WisdomTree Ethereum. But the etf apears to be less risky and, when comparing its historical volatility, 21Shares Ethereum Staking is 1.04 times less risky than WisdomTree Ethereum. The etf trades about -0.35 of its potential returns per unit of risk. The WisdomTree Ethereum ETC is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 3,043 in WisdomTree Ethereum ETC on December 2, 2024 and sell it today you would lose (1,070) from holding WisdomTree Ethereum ETC or give up 35.16% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
21Shares Ethereum Staking vs. WisdomTree Ethereum ETC
Performance |
| Timeline |
| 21Shares Ethereum Staking |
| WisdomTree Ethereum ETC |
21Shares Ethereum and WisdomTree Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 21Shares Ethereum and WisdomTree Ethereum
The main advantage of trading using opposite 21Shares Ethereum and WisdomTree Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 21Shares Ethereum position performs unexpectedly, WisdomTree Ethereum 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 WisdomTree Ethereum will offset losses from the drop in WisdomTree Ethereum's long position.| 21Shares Ethereum vs. 21Shares Polygon ETP | ||
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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 CEOs Directory module to screen CEOs from public companies around the world.
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