Correlation Between Staked Ether and CAPP
Can any of the company-specific risk be diversified away by investing in both Staked Ether and CAPP 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 CAPP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and CAPP, you can compare the effects of market volatilities on Staked Ether and CAPP 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 CAPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and CAPP.
Diversification Opportunities for Staked Ether and CAPP
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Staked and CAPP is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and CAPP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CAPP 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 CAPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CAPP has no effect on the direction of Staked Ether i.e., Staked Ether and CAPP go up and down completely randomly.
Pair Corralation between Staked Ether and CAPP
Assuming the 90 days trading horizon Staked Ether is expected to under-perform the CAPP. In addition to that, Staked Ether is 1.66 times more volatile than CAPP. It trades about -0.03 of its total potential returns per unit of risk. CAPP is currently generating about 0.05 per unit of volatility. If you would invest 0.01 in CAPP on November 18, 2024 and sell it today you would earn a total of 0.00 from holding CAPP or generate 7.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. CAPP
Performance |
| Timeline |
| Staked Ether |
| CAPP |
Staked Ether and CAPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and CAPP
The main advantage of trading using opposite Staked Ether and CAPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, CAPP 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 CAPP will offset losses from the drop in CAPP'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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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