Correlation Between Peanut The and EigenLayer
Can any of the company-specific risk be diversified away by investing in both Peanut The and EigenLayer 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 Peanut The and EigenLayer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Peanut the Squirrel and EigenLayer, you can compare the effects of market volatilities on Peanut The and EigenLayer 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 Peanut The with a short position of EigenLayer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peanut The and EigenLayer.
Diversification Opportunities for Peanut The and EigenLayer
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Peanut and EigenLayer is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Peanut the Squirrel and EigenLayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EigenLayer and Peanut The 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 Peanut the Squirrel are associated (or correlated) with EigenLayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EigenLayer has no effect on the direction of Peanut The i.e., Peanut The and EigenLayer go up and down completely randomly.
Pair Corralation between Peanut The and EigenLayer
Assuming the 90 days trading horizon Peanut the Squirrel is expected to generate 1.43 times more return on investment than EigenLayer. However, Peanut The is 1.43 times more volatile than EigenLayer. It trades about 0.08 of its potential returns per unit of risk. EigenLayer is currently generating about 0.07 per unit of risk. If you would invest 0.00 in Peanut the Squirrel on December 4, 2024 and sell it today you would earn a total of 20.00 from holding Peanut the Squirrel or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Peanut the Squirrel vs. EigenLayer
Performance |
| Timeline |
| Peanut the Squirrel |
| EigenLayer |
Peanut The and EigenLayer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Peanut The and EigenLayer
The main advantage of trading using opposite Peanut The and EigenLayer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Peanut The position performs unexpectedly, EigenLayer 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 EigenLayer will offset losses from the drop in EigenLayer's long position.| Peanut The vs. Staked Ether | Peanut The vs. Phala Network | Peanut The vs. EigenLayer | Peanut The vs. EOSDAC |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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