Correlation Between IShares Ethereum and T Rex
Can any of the company-specific risk be diversified away by investing in both IShares Ethereum and T Rex 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 IShares Ethereum and T Rex into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between iShares Ethereum Trust and T Rex 2X Inverse, you can compare the effects of market volatilities on IShares Ethereum and T Rex 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 IShares Ethereum with a short position of T Rex. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Ethereum and T Rex.
Diversification Opportunities for IShares Ethereum and T Rex
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between IShares and ETQ is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding iShares Ethereum Trust and T Rex 2X Inverse in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on T Rex 2X and IShares 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 iShares Ethereum Trust are associated (or correlated) with T Rex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of T Rex 2X has no effect on the direction of IShares Ethereum i.e., IShares Ethereum and T Rex go up and down completely randomly.
Pair Corralation between IShares Ethereum and T Rex
Given the investment horizon of 90 days iShares Ethereum Trust is expected to generate 0.51 times more return on investment than T Rex. However, iShares Ethereum Trust is 1.94 times less risky than T Rex. It trades about 0.15 of its potential returns per unit of risk. T Rex 2X Inverse is currently generating about -0.16 per unit of risk. If you would invest 2,551 in iShares Ethereum Trust on September 12, 2024 and sell it today you would earn a total of 359.00 from holding iShares Ethereum Trust or generate 14.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Ethereum Trust vs. T Rex 2X Inverse
Performance |
| Timeline |
| iShares Ethereum Trust |
| T Rex 2X |
IShares Ethereum and T Rex Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Ethereum and T Rex
The main advantage of trading using opposite IShares Ethereum and T Rex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Ethereum position performs unexpectedly, T Rex 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 T Rex will offset losses from the drop in T Rex's long position.| IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. Grayscale Ethereum Trust | IShares Ethereum vs. ProShares Trust |
| T Rex vs. ProShares Trust | T Rex vs. iShares Ethereum Trust | T Rex vs. ProShares Trust | T Rex vs. Grayscale Ethereum 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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |