Correlation Between Staked Ether and ABL
Can any of the company-specific risk be diversified away by investing in both Staked Ether and ABL 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 Staked Ether and ABL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and ABL, you can compare the effects of market volatilities on Staked Ether and ABL 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 Staked Ether with a short position of ABL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and ABL.
Diversification Opportunities for Staked Ether and ABL
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Staked and ABL is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and ABL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ABL and Staked Ether 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 Staked Ether are associated (or correlated) with ABL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ABL has no effect on the direction of Staked Ether i.e., Staked Ether and ABL go up and down completely randomly.
Pair Corralation between Staked Ether and ABL
Assuming the 90 days trading horizon Staked Ether is expected to generate 2.19 times more return on investment than ABL. However, Staked Ether is 2.19 times more volatile than ABL. It trades about 0.06 of its potential returns per unit of risk. ABL is currently generating about 0.1 per unit of risk. If you would invest 152,833 in Staked Ether on November 1, 2024 and sell it today you would earn a total of 158,424 from holding Staked Ether or generate 103.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 39.39% |
| Values | Daily Returns |
Staked Ether vs. ABL
Performance |
| Timeline |
| Staked Ether |
| ABL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Staked Ether and ABL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and ABL
The main advantage of trading using opposite Staked Ether and ABL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, ABL 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 ABL will offset losses from the drop in ABL's long position.| Staked Ether vs. Cronos | Staked Ether vs. Wrapped Bitcoin | Staked Ether vs. Monero | Staked Ether vs. Tether |
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 Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |