Correlation Between Staked Ether and UPP
Can any of the company-specific risk be diversified away by investing in both Staked Ether and UPP 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 UPP into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and UPP, you can compare the effects of market volatilities on Staked Ether and UPP 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 UPP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and UPP.
Diversification Opportunities for Staked Ether and UPP
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Staked and UPP is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and UPP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on UPP 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 UPP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of UPP has no effect on the direction of Staked Ether i.e., Staked Ether and UPP go up and down completely randomly.
Pair Corralation between Staked Ether and UPP
Assuming the 90 days trading horizon Staked Ether is expected to under-perform the UPP. But the crypto coin apears to be less risky and, when comparing its historical volatility, Staked Ether is 9.19 times less risky than UPP. The crypto coin trades about -0.03 of its potential returns per unit of risk. The UPP is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 8.50 in UPP on November 18, 2024 and sell it today you would earn a total of 0.48 from holding UPP or generate 5.65% 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. UPP
Performance |
| Timeline |
| Staked Ether |
| UPP |
Staked Ether and UPP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and UPP
The main advantage of trading using opposite Staked Ether and UPP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, UPP 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 UPP will offset losses from the drop in UPP'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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |