Correlation Between Ethereum and SK Bioscience
Can any of the company-specific risk be diversified away by investing in both Ethereum and SK Bioscience 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 SK Bioscience into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and SK Bioscience Co, you can compare the effects of market volatilities on Ethereum and SK Bioscience 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 SK Bioscience. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and SK Bioscience.
Diversification Opportunities for Ethereum and SK Bioscience
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Ethereum and 302440 is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and SK Bioscience Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SK Bioscience 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 SK Bioscience. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SK Bioscience has no effect on the direction of Ethereum i.e., Ethereum and SK Bioscience go up and down completely randomly.
Pair Corralation between Ethereum and SK Bioscience
Assuming the 90 days trading horizon Ethereum is expected to generate 2.58 times more return on investment than SK Bioscience. However, Ethereum is 2.58 times more volatile than SK Bioscience Co. It trades about 0.06 of its potential returns per unit of risk. SK Bioscience Co is currently generating about -0.02 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 | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.21% |
| Values | Daily Returns |
Ethereum vs. SK Bioscience Co
Performance |
| Timeline |
| Ethereum |
| SK Bioscience |
Ethereum and SK Bioscience Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and SK Bioscience
The main advantage of trading using opposite Ethereum and SK Bioscience positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, SK Bioscience 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 SK Bioscience will offset losses from the drop in SK Bioscience's long position.| Ethereum vs. Ethereum Classic | Ethereum vs. Ethereum PoW | Ethereum vs. Ethereum Name Service | Ethereum vs. ORN |
| SK Bioscience vs. Korea Information Engineering | SK Bioscience vs. SCI Information Service | SK Bioscience vs. Inzi Display CoLtd | SK Bioscience vs. Lotte Data Communication |
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 CEOs Directory module to screen CEOs from public companies around the world.
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