Correlation Between T Rex and IShares Ethereum
Can any of the company-specific risk be diversified away by investing in both T Rex and IShares Ethereum 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 T Rex and IShares Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T Rex 2X Inverse and iShares Ethereum Trust, you can compare the effects of market volatilities on T Rex and IShares Ethereum 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 T Rex with a short position of IShares Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of T Rex and IShares Ethereum.
Diversification Opportunities for T Rex and IShares Ethereum
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between ETQ and IShares is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding T Rex 2X Inverse and iShares Ethereum Trust in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on iShares Ethereum Trust and T Rex 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 T Rex 2X Inverse are associated (or correlated) with IShares Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of iShares Ethereum Trust has no effect on the direction of T Rex i.e., T Rex and IShares Ethereum go up and down completely randomly.
Pair Corralation between T Rex and IShares Ethereum
Considering the 90-day investment horizon T Rex 2X Inverse is expected to under-perform the IShares Ethereum. In addition to that, T Rex is 1.94 times more volatile than iShares Ethereum Trust. It trades about -0.19 of its total potential returns per unit of risk. iShares Ethereum Trust is currently generating about 0.18 per unit of volatility. If you would invest 2,492 in iShares Ethereum Trust on September 13, 2024 and sell it today you would earn a total of 455.00 from holding iShares Ethereum Trust or generate 18.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T Rex 2X Inverse vs. iShares Ethereum Trust
Performance |
| Timeline |
| T Rex 2X |
| iShares Ethereum Trust |
T Rex and IShares Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T Rex and IShares Ethereum
The main advantage of trading using opposite T Rex and IShares Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T Rex position performs unexpectedly, IShares Ethereum 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 IShares Ethereum will offset losses from the drop in IShares Ethereum's long position.| T Rex vs. ProShares Trust | T Rex vs. iShares Ethereum Trust | T Rex vs. ProShares Trust | T Rex vs. Grayscale Ethereum Trust |
| IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. ProShares Trust | IShares Ethereum vs. Grayscale Ethereum Trust | IShares Ethereum 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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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