Correlation Between Staked Ether and Bitget Token

Can any of the company-specific risk be diversified away by investing in both Staked Ether and Bitget Token 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 Bitget Token into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Staked Ether and Bitget token, you can compare the effects of market volatilities on Staked Ether and Bitget Token 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 Bitget Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Bitget Token.

Diversification Opportunities for Staked Ether and Bitget Token

0.91

Correlation Coefficient

Staked Ether  Bitget Token

Almost no diversification

The 3 months correlation between Staked and Bitget is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Bitget token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitget token 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 Bitget Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitget token has no effect on the direction of Staked Ether i.e., Staked Ether and Bitget Token go up and down completely randomly.

Pair Corralation between Staked Ether and Bitget Token

Assuming the 90 days trading horizon Staked Ether is expected to generate 1.27 times less return on investment than Bitget Token. In addition to that, Staked Ether is 1.34 times more volatile than Bitget token. It trades about 0.17 of its total potential returns per unit of risk. Bitget token is currently generating about 0.3 per unit of volatility. If you would invest  98.00  in Bitget token on August 30, 2024 and sell it today you would earn a total of  64.00  from holding Bitget token or generate 65.31% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Strong
Accuracy	100.0%
Values	Daily Returns

Staked Ether  vs.  Bitget token

Staked Ether

Risk-Adjusted Performance

13 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Staked Ether exhibited solid returns over the last few months and may actually be approaching a breakup point.

Bitget token

Risk-Adjusted Performance

23 of 100

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Bitget token are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental drivers, Bitget Token exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Staked Ether and Bitget Token

The main advantage of trading using opposite Staked Ether and Bitget Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Bitget Token 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 Bitget Token will offset losses from the drop in Bitget Token's long position.

The idea behind Staked Ether and Bitget token pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.