Correlation Between Grayscale Ethereum and Franklin Liberty
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and Franklin Liberty 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 Liberty 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 Liberty Ultra, you can compare the effects of market volatilities on Grayscale Ethereum and Franklin Liberty 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 Liberty. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and Franklin Liberty.
Diversification Opportunities for Grayscale Ethereum and Franklin Liberty
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Grayscale and Franklin is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Mini and Franklin Liberty Ultra in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Franklin Liberty Ultra 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 Liberty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Franklin Liberty Ultra has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and Franklin Liberty go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and Franklin Liberty
Considering the 90-day investment horizon Grayscale Ethereum Mini is expected to generate 35.13 times more return on investment than Franklin Liberty. However, Grayscale Ethereum is 35.13 times more volatile than Franklin Liberty Ultra. It trades about 0.33 of its potential returns per unit of risk. Franklin Liberty Ultra is currently generating about 0.15 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 | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
Grayscale Ethereum Mini vs. Franklin Liberty Ultra
Performance |
| Timeline |
| Grayscale Ethereum Mini |
| Franklin Liberty Ultra |
Grayscale Ethereum and Franklin Liberty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and Franklin Liberty
The main advantage of trading using opposite Grayscale Ethereum and Franklin Liberty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, Franklin Liberty 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 Liberty will offset losses from the drop in Franklin Liberty's long position.| Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. iShares Ethereum Trust | Grayscale Ethereum vs. ProShares Trust | Grayscale Ethereum vs. Grayscale Ethereum Trust |
| Franklin Liberty vs. Valued Advisers Trust | Franklin Liberty vs. Columbia Diversified Fixed | Franklin Liberty vs. Principal Exchange Traded Funds | Franklin Liberty 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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