Correlation Between EigenLayer and Magic Internet
Can any of the company-specific risk be diversified away by investing in both EigenLayer and Magic Internet 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 Magic Internet into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EigenLayer and Magic Internet Money, you can compare the effects of market volatilities on EigenLayer and Magic Internet 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 Magic Internet. Check out your portfolio center. Please also check ongoing floating volatility patterns of EigenLayer and Magic Internet.
Diversification Opportunities for EigenLayer and Magic Internet
-0.05 | Correlation Coefficient |
Good diversification
The 3 months correlation between EigenLayer and Magic is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and Magic Internet Money in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Magic Internet Money 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 Magic Internet. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Magic Internet Money has no effect on the direction of EigenLayer i.e., EigenLayer and Magic Internet go up and down completely randomly.
Pair Corralation between EigenLayer and Magic Internet
Assuming the 90 days trading horizon EigenLayer is expected to under-perform the Magic Internet. In addition to that, EigenLayer is 9.63 times more volatile than Magic Internet Money. It trades about -0.12 of its total potential returns per unit of risk. Magic Internet Money is currently generating about 0.21 per unit of volatility. If you would invest 96.00 in Magic Internet Money on November 4, 2024 and sell it today you would earn a total of 4.00 from holding Magic Internet Money or generate 4.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
EigenLayer vs. Magic Internet Money
Performance |
| Timeline |
| EigenLayer |
| Magic Internet Money |
EigenLayer and Magic Internet Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with EigenLayer and Magic Internet
The main advantage of trading using opposite EigenLayer and Magic Internet positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EigenLayer position performs unexpectedly, Magic Internet 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 Magic Internet will offset losses from the drop in Magic Internet's long position.The idea behind EigenLayer and Magic Internet Money 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.| Magic Internet vs. XRP | Magic Internet vs. Solana | Magic Internet vs. Sui | Magic Internet vs. Staked Ether |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| 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 | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |