Correlation Between Staked Ether and Power Ledger

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Staked Ether and Power Ledger 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 Power Ledger into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and Power Ledger, you can compare the effects of market volatilities on Staked Ether and Power Ledger 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 Power Ledger. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Power Ledger.

Diversification Opportunities for Staked Ether and Power Ledger

0.73
  Correlation Coefficient

Poor diversification

The 3 months correlation between Staked and Power is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Power Ledger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Power Ledger 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 Power Ledger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Power Ledger has no effect on the direction of Staked Ether i.e., Staked Ether and Power Ledger go up and down completely randomly.

Pair Corralation between Staked Ether and Power Ledger

Assuming the 90 days trading horizon Staked Ether is expected to under-perform the Power Ledger. But the crypto coin apears to be less risky and, when comparing its historical volatility, Staked Ether is 1.22 times less risky than Power Ledger. The crypto coin trades about -0.11 of its potential returns per unit of risk. The Power Ledger is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest  28.00  in Power Ledger on November 2, 2024 and sell it today you would lose (2.00) from holding Power Ledger or give up 7.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Staked Ether  vs.  Power Ledger

 Performance 
       Timeline  
Staked Ether 

Risk-Adjusted Performance

10 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Staked Ether exhibited solid returns over the last few months and may actually be approaching a breakup point.
Power Ledger 

Risk-Adjusted Performance

8 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Power Ledger are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Power Ledger exhibited solid returns over the last few months and may actually be approaching a breakup point.

Staked Ether and Power Ledger Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Staked Ether and Power Ledger

The main advantage of trading using opposite Staked Ether and Power Ledger positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Power Ledger 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 Power Ledger will offset losses from the drop in Power Ledger's long position.
The idea behind Staked Ether and Power Ledger 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Global Markets Map
Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes