Correlation Between Wrapped Beacon and EOSDAC
Can any of the company-specific risk be diversified away by investing in both Wrapped Beacon and EOSDAC 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 Wrapped Beacon and EOSDAC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrapped Beacon ETH and EOSDAC, you can compare the effects of market volatilities on Wrapped Beacon and EOSDAC 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 Wrapped Beacon with a short position of EOSDAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrapped Beacon and EOSDAC.
Diversification Opportunities for Wrapped Beacon and EOSDAC
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Wrapped and EOSDAC is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped Beacon ETH and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and Wrapped Beacon 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 Wrapped Beacon ETH are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of Wrapped Beacon i.e., Wrapped Beacon and EOSDAC go up and down completely randomly.
Pair Corralation between Wrapped Beacon and EOSDAC
Assuming the 90 days trading horizon Wrapped Beacon ETH is expected to under-perform the EOSDAC. But the crypto coin apears to be less risky and, when comparing its historical volatility, Wrapped Beacon ETH is 1.96 times less risky than EOSDAC. The crypto coin trades about -0.01 of its potential returns per unit of risk. The EOSDAC is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 0.03 in EOSDAC on November 5, 2024 and sell it today you would earn a total of 0.00 from holding EOSDAC or generate 11.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wrapped Beacon ETH vs. EOSDAC
Performance |
| Timeline |
| Wrapped Beacon ETH |
| EOSDAC |
Wrapped Beacon and EOSDAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wrapped Beacon and EOSDAC
The main advantage of trading using opposite Wrapped Beacon and EOSDAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrapped Beacon position performs unexpectedly, EOSDAC 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 EOSDAC will offset losses from the drop in EOSDAC's long position.| Wrapped Beacon vs. Wrapped eETH | Wrapped Beacon vs. Staked Ether | Wrapped Beacon vs. Phala Network | Wrapped Beacon vs. EigenLayer |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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