Correlation Between Staked Ether and DATA
Can any of the company-specific risk be diversified away by investing in both Staked Ether and DATA 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 DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and DATA, you can compare the effects of market volatilities on Staked Ether and DATA 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 DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and DATA.
Diversification Opportunities for Staked Ether and DATA
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Staked and DATA is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and DATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on DATA 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 DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of DATA has no effect on the direction of Staked Ether i.e., Staked Ether and DATA go up and down completely randomly.
Pair Corralation between Staked Ether and DATA
Assuming the 90 days trading horizon Staked Ether is expected to generate 0.66 times more return on investment than DATA. However, Staked Ether is 1.51 times less risky than DATA. It trades about -0.03 of its potential returns per unit of risk. DATA is currently generating about -0.07 per unit of risk. If you would invest 310,992 in Staked Ether on November 18, 2024 and sell it today you would lose (41,690) from holding Staked Ether or give up 13.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. DATA
Performance |
| Timeline |
| Staked Ether |
| DATA |
Staked Ether and DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and DATA
The main advantage of trading using opposite Staked Ether and DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, DATA 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 DATA will offset losses from the drop in DATA'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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