Correlation Between Staked Ether and THENA
Can any of the company-specific risk be diversified away by investing in both Staked Ether and THENA 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 THENA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and THENA, you can compare the effects of market volatilities on Staked Ether and THENA 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 THENA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and THENA.
Diversification Opportunities for Staked Ether and THENA
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Staked and THENA is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and THENA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THENA 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 THENA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THENA has no effect on the direction of Staked Ether i.e., Staked Ether and THENA go up and down completely randomly.
Pair Corralation between Staked Ether and THENA
Assuming the 90 days trading horizon Staked Ether is expected to generate 0.47 times more return on investment than THENA. However, Staked Ether is 2.12 times less risky than THENA. It trades about -0.06 of its potential returns per unit of risk. THENA is currently generating about -0.3 per unit of risk. If you would invest 348,689 in Staked Ether on October 23, 2024 and sell it today you would lose (21,101) from holding Staked Ether or give up 6.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. THENA
Performance |
| Timeline |
| Staked Ether |
| THENA |
Staked Ether and THENA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and THENA
The main advantage of trading using opposite Staked Ether and THENA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, THENA 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 THENA will offset losses from the drop in THENA'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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