Correlation Between Staked Ether and Astar
Can any of the company-specific risk be diversified away by investing in both Staked Ether and Astar 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 Astar into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and Astar, you can compare the effects of market volatilities on Staked Ether and Astar 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 Astar. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Astar.
Diversification Opportunities for Staked Ether and Astar
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Staked and Astar is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Astar in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Astar 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 Astar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Astar has no effect on the direction of Staked Ether i.e., Staked Ether and Astar go up and down completely randomly.
Pair Corralation between Staked Ether and Astar
Assuming the 90 days trading horizon Staked Ether is expected to generate 0.79 times more return on investment than Astar. However, Staked Ether is 1.27 times less risky than Astar. It trades about -0.07 of its potential returns per unit of risk. Astar is currently generating about -0.16 per unit of risk. If you would invest 348,689 in Staked Ether on October 24, 2024 and sell it today you would lose (24,324) from holding Staked Ether or give up 6.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. Astar
Performance |
| Timeline |
| Staked Ether |
| Astar |
Staked Ether and Astar Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and Astar
The main advantage of trading using opposite Staked Ether and Astar positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Astar 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 Astar will offset losses from the drop in Astar'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |