Correlation Between EMERCOIN and EigenLayer

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Can any of the company-specific risk be diversified away by investing in both EMERCOIN and EigenLayer 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 EMERCOIN and EigenLayer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between EMERCOIN and EigenLayer, you can compare the effects of market volatilities on EMERCOIN and EigenLayer 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 EMERCOIN with a short position of EigenLayer. Check out your portfolio center. Please also check ongoing floating volatility patterns of EMERCOIN and EigenLayer.

Diversification Opportunities for EMERCOIN and EigenLayer

EMERCOINEigenLayerDiversified AwayEMERCOINEigenLayerDiversified Away100%
0.82
  Correlation Coefficient

Very poor diversification

The 3 months correlation between EMERCOIN and EigenLayer is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding EMERCOIN and EigenLayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EigenLayer and EMERCOIN 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 EMERCOIN are associated (or correlated) with EigenLayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EigenLayer has no effect on the direction of EMERCOIN i.e., EMERCOIN and EigenLayer go up and down completely randomly.

Pair Corralation between EMERCOIN and EigenLayer

Assuming the 90 days trading horizon EMERCOIN is expected to generate 2.4 times more return on investment than EigenLayer. However, EMERCOIN is 2.4 times more volatile than EigenLayer. It trades about -0.01 of its potential returns per unit of risk. EigenLayer is currently generating about -0.17 per unit of risk. If you would invest  0.21  in EMERCOIN on November 29, 2024 and sell it today you would lose (0.11) from holding EMERCOIN or give up 55.08% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

EMERCOIN  vs.  EigenLayer

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -50050100
JavaScript chart by amCharts 3.21.15EMERCOIN EIGEN
       Timeline  
EMERCOIN 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days EMERCOIN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Crypto's fundamental indicators remain fairly strong which may send shares a bit higher in March 2025. The recent confusion may also be a sign of long-lasting up-swing for EMERCOIN traders.
JavaScript chart by amCharts 3.21.15JanFebFeb0.0010.0020.0030.0040.0050.0060.0070.008
EigenLayer 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days EigenLayer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for EigenLayer shareholders.
JavaScript chart by amCharts 3.21.15JanFebFeb1.522.533.544.555.5

EMERCOIN and EigenLayer Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-75.15-56.29-37.42-18.55-0.3118.3237.2856.2375.1994.14 0.0010.0020.0030.0040.005
JavaScript chart by amCharts 3.21.15EMERCOIN EIGEN
       Returns  

Pair Trading with EMERCOIN and EigenLayer

The main advantage of trading using opposite EMERCOIN and EigenLayer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EMERCOIN position performs unexpectedly, EigenLayer 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 EigenLayer will offset losses from the drop in EigenLayer's long position.
The idea behind EMERCOIN and EigenLayer 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.
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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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.

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