Correlation Between EigenLayer and Aptos
Can any of the company-specific risk be diversified away by investing in both EigenLayer and Aptos 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 EigenLayer and Aptos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EigenLayer and Aptos, you can compare the effects of market volatilities on EigenLayer and Aptos 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 EigenLayer with a short position of Aptos. Check out your portfolio center. Please also check ongoing floating volatility patterns of EigenLayer and Aptos.
Diversification Opportunities for EigenLayer and Aptos
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between EigenLayer and Aptos is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and Aptos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aptos and EigenLayer 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 EigenLayer are associated (or correlated) with Aptos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aptos has no effect on the direction of EigenLayer i.e., EigenLayer and Aptos go up and down completely randomly.
Pair Corralation between EigenLayer and Aptos
Assuming the 90 days trading horizon EigenLayer is expected to generate 5.87 times more return on investment than Aptos. However, EigenLayer is 5.87 times more volatile than Aptos. It trades about 0.03 of its potential returns per unit of risk. Aptos is currently generating about 0.01 per unit of risk. If you would invest 284.00 in EigenLayer on January 25, 2025 and sell it today you would lose (189.00) from holding EigenLayer or give up 66.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
EigenLayer vs. Aptos
Performance |
| Timeline |
| EigenLayer |
| Aptos |
EigenLayer and Aptos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EigenLayer and Aptos
The main advantage of trading using opposite EigenLayer and Aptos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EigenLayer position performs unexpectedly, Aptos 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 Aptos will offset losses from the drop in Aptos' long position.The idea behind EigenLayer and Aptos 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |