Correlation Between Staked Ether and Hashflow
Can any of the company-specific risk be diversified away by investing in both Staked Ether and Hashflow 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 Hashflow into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and Hashflow, you can compare the effects of market volatilities on Staked Ether and Hashflow 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 Hashflow. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Hashflow.
Diversification Opportunities for Staked Ether and Hashflow
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Staked and Hashflow is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Hashflow in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashflow 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 Hashflow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashflow has no effect on the direction of Staked Ether i.e., Staked Ether and Hashflow go up and down completely randomly.
Pair Corralation between Staked Ether and Hashflow
Assuming the 90 days trading horizon Staked Ether is expected to generate 1.1 times less return on investment than Hashflow. But when comparing it to its historical volatility, Staked Ether is 1.55 times less risky than Hashflow. It trades about 0.31 of its potential returns per unit of risk. Hashflow is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 15.00 in Hashflow on August 24, 2024 and sell it today you would earn a total of 5.00 from holding Hashflow or generate 33.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. Hashflow
Performance |
| Timeline |
| Staked Ether |
| Hashflow |
Staked Ether and Hashflow Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and Hashflow
The main advantage of trading using opposite Staked Ether and Hashflow positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Hashflow 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 Hashflow will offset losses from the drop in Hashflow's long position.The idea behind Staked Ether and Hashflow pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Transaction History module to view history of all your transactions and understand their impact on performance.
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