Correlation Between Ethereum and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Ethereum and Eiffage SA 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 Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and Eiffage SA, you can compare the effects of market volatilities on Ethereum and Eiffage SA 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 Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Eiffage SA.
Diversification Opportunities for Ethereum and Eiffage SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ethereum and Eiffage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA 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 Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of Ethereum i.e., Ethereum and Eiffage SA go up and down completely randomly.
Pair Corralation between Ethereum and Eiffage SA
Assuming the 90 days trading horizon Ethereum is expected to generate 3.24 times more return on investment than Eiffage SA. However, Ethereum is 3.24 times more volatile than Eiffage SA. It trades about 0.06 of its potential returns per unit of risk. Eiffage SA 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 | Flat |
| Strength | Insignificant |
| Accuracy | 65.44% |
| Values | Daily Returns |
Ethereum vs. Eiffage SA
Performance |
| Timeline |
| Ethereum |
| Eiffage SA |
Ethereum and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and Eiffage SA
The main advantage of trading using opposite Ethereum and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| Ethereum vs. Ethereum Classic | Ethereum vs. Ethereum PoW | Ethereum vs. Ethereum Name Service | Ethereum vs. ORN |
| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. Orion Group Holdings | Eiffage SA vs. Matrix Service Co | Eiffage SA vs. Limbach Holdings |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges |