Correlation Between Yearnfinance and Staked Ether
Can any of the company-specific risk be diversified away by investing in both Yearnfinance and Staked Ether 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 Yearnfinance and Staked Ether into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between yearnfinance and Staked Ether, you can compare the effects of market volatilities on Yearnfinance and Staked Ether 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 Yearnfinance with a short position of Staked Ether. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yearnfinance and Staked Ether.
Diversification Opportunities for Yearnfinance and Staked Ether
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yearnfinance and Staked is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding yearnfinance and Staked Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staked Ether and Yearnfinance 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 yearnfinance are associated (or correlated) with Staked Ether. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staked Ether has no effect on the direction of Yearnfinance i.e., Yearnfinance and Staked Ether go up and down completely randomly.
Pair Corralation between Yearnfinance and Staked Ether
Assuming the 90 days trading horizon yearnfinance is expected to generate 0.84 times more return on investment than Staked Ether. However, yearnfinance is 1.19 times less risky than Staked Ether. It trades about -0.22 of its potential returns per unit of risk. Staked Ether is currently generating about -0.2 per unit of risk. If you would invest 687,596 in yearnfinance on November 28, 2024 and sell it today you would lose (117,136) from holding yearnfinance or give up 17.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
yearnfinance vs. Staked Ether
Performance |
| Timeline |
| yearnfinance |
| Staked Ether |
Yearnfinance and Staked Ether Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yearnfinance and Staked Ether
The main advantage of trading using opposite Yearnfinance and Staked Ether positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yearnfinance position performs unexpectedly, Staked Ether 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 Staked Ether will offset losses from the drop in Staked Ether's long position.| Yearnfinance vs. Staked Ether | Yearnfinance vs. Phala Network | Yearnfinance vs. EigenLayer | Yearnfinance vs. EOSDAC |
| 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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