Correlation Between Ethereum and Sanan Optoelectronics
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By analyzing existing cross correlation between Ethereum and Sanan Optoelectronics Co, you can compare the effects of market volatilities on Ethereum and Sanan Optoelectronics 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 Sanan Optoelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Sanan Optoelectronics.
Diversification Opportunities for Ethereum and Sanan Optoelectronics
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ethereum and Sanan is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Sanan Optoelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sanan Optoelectronics 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 Sanan Optoelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sanan Optoelectronics has no effect on the direction of Ethereum i.e., Ethereum and Sanan Optoelectronics go up and down completely randomly.
Pair Corralation between Ethereum and Sanan Optoelectronics
Assuming the 90 days trading horizon Ethereum is expected to generate 1.47 times more return on investment than Sanan Optoelectronics. However, Ethereum is 1.47 times more volatile than Sanan Optoelectronics Co. It trades about 0.09 of its potential returns per unit of risk. Sanan Optoelectronics Co is currently generating about 0.06 per unit of risk. If you would invest 245,036 in Ethereum on November 2, 2024 and sell it today you would earn a total of 80,779 from holding Ethereum or generate 32.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 91.59% |
| Values | Daily Returns |
Ethereum vs. Sanan Optoelectronics Co
Performance |
| Timeline |
| Ethereum |
| Sanan Optoelectronics |
Ethereum and Sanan Optoelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and Sanan Optoelectronics
The main advantage of trading using opposite Ethereum and Sanan Optoelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Sanan Optoelectronics 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 Sanan Optoelectronics will offset losses from the drop in Sanan Optoelectronics' long position.The idea behind Ethereum and Sanan Optoelectronics Co 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.| Sanan Optoelectronics vs. SSAW Hotels Resorts | Sanan Optoelectronics vs. Sichuan Fulin Transportation | Sanan Optoelectronics vs. Qijing Machinery | Sanan Optoelectronics vs. Guangzhou Dongfang Hotel |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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