Correlation Between Staked Ether and Core
Can any of the company-specific risk be diversified away by investing in both Staked Ether and Core 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 Core into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and Core, you can compare the effects of market volatilities on Staked Ether and Core 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 Core. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Core.
Diversification Opportunities for Staked Ether and Core
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Staked and Core is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Core in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Core 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 Core. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Core has no effect on the direction of Staked Ether i.e., Staked Ether and Core go up and down completely randomly.
Pair Corralation between Staked Ether and Core
Assuming the 90 days trading horizon Staked Ether is expected to generate 0.83 times more return on investment than Core. However, Staked Ether is 1.2 times less risky than Core. It trades about -0.25 of its potential returns per unit of risk. Core is currently generating about -0.22 per unit of risk. If you would invest 307,337 in Staked Ether on November 28, 2024 and sell it today you would lose (73,630) from holding Staked Ether or give up 23.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. Core
Performance |
| Timeline |
| Staked Ether |
| Core |
Staked Ether and Core Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and Core
The main advantage of trading using opposite Staked Ether and Core positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Core 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 Core will offset losses from the drop in Core'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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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