Correlation Between Ethereum and Xeros Technology
Can any of the company-specific risk be diversified away by investing in both Ethereum and Xeros Technology 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 Xeros Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and Xeros Technology Group, you can compare the effects of market volatilities on Ethereum and Xeros Technology 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 Xeros Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Xeros Technology.
Diversification Opportunities for Ethereum and Xeros Technology
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Ethereum and Xeros is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Xeros Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xeros Technology 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 Xeros Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xeros Technology has no effect on the direction of Ethereum i.e., Ethereum and Xeros Technology go up and down completely randomly.
Pair Corralation between Ethereum and Xeros Technology
Assuming the 90 days trading horizon Ethereum is expected to under-perform the Xeros Technology. But the crypto coin apears to be less risky and, when comparing its historical volatility, Ethereum is 2.03 times less risky than Xeros Technology. The crypto coin trades about -0.23 of its potential returns per unit of risk. The Xeros Technology Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Xeros Technology Group on October 17, 2024 and sell it today you would earn a total of 10.00 from holding Xeros Technology Group or generate 23.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Ethereum vs. Xeros Technology Group
Performance |
| Timeline |
| Ethereum |
| Xeros Technology |
Ethereum and Xeros Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ethereum and Xeros Technology
The main advantage of trading using opposite Ethereum and Xeros Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Xeros Technology 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 Xeros Technology will offset losses from the drop in Xeros Technology's long position.The idea behind Ethereum and Xeros Technology Group 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.| Xeros Technology vs. Taiwan Semiconductor Manufacturing | Xeros Technology vs. XLMedia PLC | Xeros Technology vs. Zinc Media Group | Xeros Technology vs. Liberty Media Corp |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |