Correlation Between Ethereum and Kimteks Poliuretan

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

Diversification Opportunities for Ethereum and Kimteks Poliuretan

0.77
  Correlation Coefficient

Poor diversification

The 3 months correlation between Ethereum and Kimteks is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Kimteks Poliuretan Sanayi in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kimteks Poliuretan Sanayi 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 Kimteks Poliuretan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kimteks Poliuretan Sanayi has no effect on the direction of Ethereum i.e., Ethereum and Kimteks Poliuretan go up and down completely randomly.

Pair Corralation between Ethereum and Kimteks Poliuretan

Assuming the 90 days trading horizon Ethereum is expected to generate 2.58 times more return on investment than Kimteks Poliuretan. However, Ethereum is 2.58 times more volatile than Kimteks Poliuretan Sanayi. It trades about 0.02 of its potential returns per unit of risk. Kimteks Poliuretan Sanayi is currently generating about -0.07 per unit of risk. If you would invest  347,082  in Ethereum on October 20, 2024 and sell it today you would earn a total of  639.00  from holding Ethereum or generate 0.18% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Ethereum  vs.  Kimteks Poliuretan Sanayi

 Performance 
       Timeline  
Ethereum 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Ethereum are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Ethereum exhibited solid returns over the last few months and may actually be approaching a breakup point.
Kimteks Poliuretan Sanayi 

Risk-Adjusted Performance

7 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Kimteks Poliuretan Sanayi are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite fairly inconsistent forward indicators, Kimteks Poliuretan demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Ethereum and Kimteks Poliuretan Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ethereum and Kimteks Poliuretan

The main advantage of trading using opposite Ethereum and Kimteks Poliuretan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Kimteks Poliuretan 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 Kimteks Poliuretan will offset losses from the drop in Kimteks Poliuretan's long position.
The idea behind Ethereum and Kimteks Poliuretan Sanayi 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.

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