Correlation Between IShares Ethereum and Fidelity Advantage
Can any of the company-specific risk be diversified away by investing in both IShares Ethereum and Fidelity Advantage 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 Fidelity Advantage 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 Fidelity Advantage Ether, you can compare the effects of market volatilities on IShares Ethereum and Fidelity Advantage 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 Fidelity Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of IShares Ethereum and Fidelity Advantage.
Diversification Opportunities for IShares Ethereum and Fidelity Advantage
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between IShares and Fidelity is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding iShares Ethereum Trust and Fidelity Advantage Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fidelity Advantage Ether 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 Fidelity Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fidelity Advantage Ether has no effect on the direction of IShares Ethereum i.e., IShares Ethereum and Fidelity Advantage go up and down completely randomly.
Pair Corralation between IShares Ethereum and Fidelity Advantage
Given the investment horizon of 90 days iShares Ethereum Trust is expected to generate 1.0 times more return on investment than Fidelity Advantage. However, IShares Ethereum is 1.0 times more volatile than Fidelity Advantage Ether. It trades about -0.2 of its potential returns per unit of risk. Fidelity Advantage Ether is currently generating about -0.2 per unit of risk. If you would invest 2,379 in iShares Ethereum Trust on November 28, 2024 and sell it today you would lose (496.00) from holding iShares Ethereum Trust or give up 20.85% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
iShares Ethereum Trust vs. Fidelity Advantage Ether
Performance |
| Timeline |
| iShares Ethereum Trust |
| Fidelity Advantage Ether |
IShares Ethereum and Fidelity Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with IShares Ethereum and Fidelity Advantage
The main advantage of trading using opposite IShares Ethereum and Fidelity Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if IShares Ethereum position performs unexpectedly, Fidelity Advantage 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 Fidelity Advantage will offset losses from the drop in Fidelity Advantage's long position.| IShares Ethereum vs. Grayscale Funds Trust | IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. Grayscale Ethereum Trust |
| Fidelity Advantage vs. Grayscale Funds Trust | Fidelity Advantage vs. ProShares Trust | Fidelity Advantage vs. iShares Ethereum Trust | Fidelity Advantage vs. ProShares 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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