Correlation Between Staked Ether and TNB
Can any of the company-specific risk be diversified away by investing in both Staked Ether and TNB 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 TNB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and TNB, you can compare the effects of market volatilities on Staked Ether and TNB 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 TNB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and TNB.
Diversification Opportunities for Staked Ether and TNB
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Staked and TNB is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and TNB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TNB 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 TNB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TNB has no effect on the direction of Staked Ether i.e., Staked Ether and TNB go up and down completely randomly.
Pair Corralation between Staked Ether and TNB
Assuming the 90 days trading horizon Staked Ether is expected to under-perform the TNB. In addition to that, Staked Ether is 1.77 times more volatile than TNB. It trades about -0.03 of its total potential returns per unit of risk. TNB is currently generating about 0.05 per unit of volatility. If you would invest 0.01 in TNB on November 18, 2024 and sell it today you would earn a total of 0.00 from holding TNB or generate 6.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. TNB
Performance |
| Timeline |
| Staked Ether |
| TNB |
Staked Ether and TNB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and TNB
The main advantage of trading using opposite Staked Ether and TNB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, TNB 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 TNB will offset losses from the drop in TNB'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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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