Correlation Between Grayscale Ethereum and EA Series
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and EA Series 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 Grayscale Ethereum and EA Series into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Ethereum Mini and EA Series Trust, you can compare the effects of market volatilities on Grayscale Ethereum and EA Series 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 Grayscale Ethereum with a short position of EA Series. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and EA Series.
Diversification Opportunities for Grayscale Ethereum and EA Series
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Grayscale and BUXX is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and EA Series Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EA Series Trust and Grayscale 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 Grayscale Ethereum Mini are associated (or correlated) with EA Series. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EA Series Trust has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and EA Series go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and EA Series
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to generate 70.34 times more return on investment than EA Series. However, Grayscale Ethereum is 70.34 times more volatile than EA Series Trust. It trades about 0.33 of its potential returns per unit of risk. EA Series Trust is currently generating about 0.25 per unit of risk. If you would invest 2,360 in Grayscale Ethereum Mini on September 1, 2024 and sell it today you would earn a total of 1,024 from holding Grayscale Ethereum Mini or generate 43.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. EA Series Trust
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| EA Series Trust |
Grayscale Ethereum and EA Series Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and EA Series
The main advantage of trading using opposite Grayscale Ethereum and EA Series positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, EA Series 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 EA Series will offset losses from the drop in EA Series' long position.| Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. Grayscale Ethereum Trust |
| EA Series vs. Valued Advisers Trust | EA Series vs. Columbia Diversified Fixed | EA Series vs. Principal Exchange Traded Funds | EA Series vs. Doubleline Etf Trust |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges |