Correlation Between Staked Ether and USD Coin
Can any of the company-specific risk be diversified away by investing in both Staked Ether and USD Coin 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 USD Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and USD Coin, you can compare the effects of market volatilities on Staked Ether and USD Coin 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 USD Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and USD Coin.
Diversification Opportunities for Staked Ether and USD Coin
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Staked and USD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and USD Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on USD Coin 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 USD Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of USD Coin has no effect on the direction of Staked Ether i.e., Staked Ether and USD Coin go up and down completely randomly.
Pair Corralation between Staked Ether and USD Coin
If you would invest 374,811 in Staked Ether on October 20, 2024 and sell it today you would lose (27,230) from holding Staked Ether or give up 7.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. USD Coin
Performance |
| Timeline |
| Staked Ether |
| USD Coin |
Staked Ether and USD Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and USD Coin
The main advantage of trading using opposite Staked Ether and USD Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, USD Coin 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 USD Coin will offset losses from the drop in USD Coin'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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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