Correlation Between EigenLayer and Hedera Hashgraph

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

By analyzing existing cross correlation between EigenLayer and Hedera Hashgraph, you can compare the effects of market volatilities on EigenLayer and Hedera Hashgraph 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 EigenLayer with a short position of Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of EigenLayer and Hedera Hashgraph.

Diversification Opportunities for EigenLayer and Hedera Hashgraph

0.41

Correlation Coefficient

EigenLayer  Hedera Hashgraph

Very weak diversification

The 3 months correlation between EigenLayer and Hedera is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph and EigenLayer 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 EigenLayer are associated (or correlated) with Hedera Hashgraph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Hashgraph has no effect on the direction of EigenLayer i.e., EigenLayer and Hedera Hashgraph go up and down completely randomly.

Pair Corralation between EigenLayer and Hedera Hashgraph

Assuming the 90 days trading horizon EigenLayer is expected to under-perform the Hedera Hashgraph. But the crypto coin apears to be less risky and, when comparing its historical volatility, EigenLayer is 1.51 times less risky than Hedera Hashgraph. The crypto coin trades about -0.1 of its potential returns per unit of risk. The Hedera Hashgraph is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest  18.00  in Hedera Hashgraph on November 28, 2024 and sell it today you would earn a total of  2.00  from holding Hedera Hashgraph or generate 11.11% return on investment over 90 days.

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

EigenLayer  vs.  Hedera Hashgraph

EigenLayer

Risk-Adjusted Performance

Very Weak

Over the last 90 days EigenLayer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in March 2025. The latest tumult may also be a sign of longer-term up-swing for EigenLayer shareholders.

Hedera Hashgraph

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hedera Hashgraph are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hedera Hashgraph exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EigenLayer and Hedera Hashgraph

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

The idea behind EigenLayer and Hedera Hashgraph 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.