Correlation Between Siren Nasdaq and VanEck Ethereum
Can any of the company-specific risk be diversified away by investing in both Siren Nasdaq and VanEck Ethereum 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 Siren Nasdaq and VanEck Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siren Nasdaq NexGen and VanEck Ethereum ETF, you can compare the effects of market volatilities on Siren Nasdaq and VanEck 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 Siren Nasdaq with a short position of VanEck Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siren Nasdaq and VanEck Ethereum.
Diversification Opportunities for Siren Nasdaq and VanEck Ethereum
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Siren and VanEck is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Siren Nasdaq NexGen and VanEck Ethereum ETF in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on VanEck Ethereum ETF and Siren 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 Siren Nasdaq NexGen are associated (or correlated) with VanEck Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of VanEck Ethereum ETF has no effect on the direction of Siren Nasdaq i.e., Siren Nasdaq and VanEck Ethereum go up and down completely randomly.
Pair Corralation between Siren Nasdaq and VanEck Ethereum
Given the investment horizon of 90 days Siren Nasdaq is expected to generate 2.46 times less return on investment than VanEck Ethereum. But when comparing it to its historical volatility, Siren Nasdaq NexGen is 1.64 times less risky than VanEck Ethereum. It trades about 0.18 of its potential returns per unit of risk. VanEck Ethereum ETF is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 3,625 in VanEck Ethereum ETF on August 26, 2024 and sell it today you would earn a total of 1,196 from holding VanEck Ethereum ETF or generate 32.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siren Nasdaq NexGen vs. VanEck Ethereum ETF
Performance |
| Timeline |
| Siren Nasdaq NexGen |
| VanEck Ethereum ETF |
Siren Nasdaq and VanEck Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siren Nasdaq and VanEck Ethereum
The main advantage of trading using opposite Siren Nasdaq and VanEck Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siren Nasdaq position performs unexpectedly, VanEck 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 VanEck Ethereum will offset losses from the drop in VanEck Ethereum's long position.| Siren Nasdaq vs. Grayscale Bitcoin Trust | Siren Nasdaq vs. Grayscale Bitcoin Mini | Siren Nasdaq vs. First Trust SkyBridge |
| VanEck Ethereum vs. Grayscale Bitcoin Trust | VanEck Ethereum vs. Siren Nasdaq NexGen | VanEck Ethereum vs. Grayscale Bitcoin Mini | VanEck Ethereum vs. First Trust SkyBridge |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance |