Correlation Between Ethereum and Space Shuttle
Can any of the company-specific risk be diversified away by investing in both Ethereum and Space Shuttle 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 Ethereum and Space Shuttle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and Space Shuttle Hi Tech, you can compare the effects of market volatilities on Ethereum and Space Shuttle 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 Ethereum with a short position of Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Space Shuttle.
Diversification Opportunities for Ethereum and Space Shuttle
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ethereum and Space is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi and 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 Ethereum are associated (or correlated) with Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Ethereum i.e., Ethereum and Space Shuttle go up and down completely randomly.
Pair Corralation between Ethereum and Space Shuttle
Assuming the 90 days trading horizon Ethereum is expected to generate 2.62 times more return on investment than Space Shuttle. However, Ethereum is 2.62 times more volatile than Space Shuttle Hi Tech. It trades about 0.06 of its potential returns per unit of risk. Space Shuttle Hi Tech is currently generating about 0.01 per unit of risk. If you would invest 155,614 in Ethereum on November 2, 2024 and sell it today you would earn a total of 170,201 from holding Ethereum or generate 109.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 61.83% |
| Values | Daily Returns |
Ethereum vs. Space Shuttle Hi Tech
Performance |
| Timeline |
| Ethereum |
| Space Shuttle Hi |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Ethereum and Space Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and Space Shuttle
The main advantage of trading using opposite Ethereum and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle's long position.| Ethereum vs. Ethereum Classic | Ethereum vs. Ethereum PoW | Ethereum vs. Ethereum Name Service | Ethereum vs. ORN |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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