Correlation Between Grayscale Ethereum and Franklin FTSE
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and Franklin FTSE 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 Franklin FTSE 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 Franklin FTSE Germany, you can compare the effects of market volatilities on Grayscale Ethereum and Franklin FTSE 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 Franklin FTSE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and Franklin FTSE.
Diversification Opportunities for Grayscale Ethereum and Franklin FTSE
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Grayscale and Franklin is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and Franklin FTSE Germany in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin FTSE Germany 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 Franklin FTSE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin FTSE Germany has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and Franklin FTSE go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and Franklin FTSE
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to under-perform the Franklin FTSE. In addition to that, Grayscale Ethereum is 4.86 times more volatile than Franklin FTSE Germany. It trades about -0.04 of its total potential returns per unit of risk. Franklin FTSE Germany is currently generating about 0.08 per unit of volatility. If you would invest 2,008 in Franklin FTSE Germany on November 29, 2024 and sell it today you would earn a total of 821.83 from holding Franklin FTSE Germany or generate 40.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 30.69% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. Franklin FTSE Germany
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| Franklin FTSE Germany |
Grayscale Ethereum and Franklin FTSE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and Franklin FTSE
The main advantage of trading using opposite Grayscale Ethereum and Franklin FTSE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, Franklin FTSE 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 Franklin FTSE will offset losses from the drop in Franklin FTSE's long position.| Grayscale Ethereum vs. Grayscale Funds Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust |
| Franklin FTSE vs. Franklin FTSE United | Franklin FTSE vs. Franklin FTSE Australia | Franklin FTSE vs. Franklin FTSE Canada |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |