Correlation Between Grayscale Ethereum and ProShares Trust
Can any of the company-specific risk be diversified away by investing in both Grayscale Ethereum and ProShares Trust 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 ProShares Trust into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grayscale Ethereum Trust and ProShares Trust, you can compare the effects of market volatilities on Grayscale Ethereum and ProShares Trust 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 ProShares Trust. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grayscale Ethereum and ProShares Trust.
Diversification Opportunities for Grayscale Ethereum and ProShares Trust
-0.97 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Grayscale and ProShares is -0.97. Overlapping area represents the amount of risk that can be diversified away by holding Grayscale Ethereum Trust and ProShares Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ProShares 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 Trust are associated (or correlated) with ProShares Trust. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ProShares Trust has no effect on the direction of Grayscale Ethereum i.e., Grayscale Ethereum and ProShares Trust go up and down completely randomly.
Pair Corralation between Grayscale Ethereum and ProShares Trust
Given the investment horizon of 90 days Grayscale Ethereum Trust is expected to generate 0.51 times more return on investment than ProShares Trust. However, Grayscale Ethereum Trust is 1.98 times less risky than ProShares Trust. It trades about 0.28 of its potential returns per unit of risk. ProShares Trust is currently generating about -0.31 per unit of risk. If you would invest 2,081 in Grayscale Ethereum Trust on August 26, 2024 and sell it today you would earn a total of 687.00 from holding Grayscale Ethereum Trust or generate 33.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grayscale Ethereum Trust vs. ProShares Trust
Performance |
| Timeline |
| Grayscale Ethereum Trust |
| ProShares Trust |
Grayscale Ethereum and ProShares Trust Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grayscale Ethereum and ProShares Trust
The main advantage of trading using opposite Grayscale Ethereum and ProShares Trust positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grayscale Ethereum position performs unexpectedly, ProShares Trust 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 ProShares Trust will offset losses from the drop in ProShares Trust's long position.| Grayscale Ethereum vs. Grayscale Bitcoin Trust | Grayscale Ethereum vs. Grayscale Litecoin Trust | Grayscale Ethereum vs. Grayscale Digital Large | Grayscale Ethereum vs. Bitwise 10 Crypto |
| ProShares Trust vs. ProShares Trust | ProShares Trust vs. iShares Ethereum Trust | ProShares Trust vs. Grayscale Ethereum Trust | ProShares Trust 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |