Correlation Between Ethereum and TELEFO

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

By analyzing existing cross correlation between Ethereum and TELEFO 495 17 JUL 30, you can compare the effects of market volatilities on Ethereum and TELEFO 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 Ethereum with a short position of TELEFO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and TELEFO.

Diversification Opportunities for Ethereum and TELEFO

-0.89

Correlation Coefficient

Ethereum  TELEFO

Pay attention - limited upside

The 3 months correlation between Ethereum and TELEFO is -0.89. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and TELEFO 495 17 JUL 30 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TELEFO 495 17 and Ethereum 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 Ethereum are associated (or correlated) with TELEFO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TELEFO 495 17 has no effect on the direction of Ethereum i.e., Ethereum and TELEFO go up and down completely randomly.

Pair Corralation between Ethereum and TELEFO

Assuming the 90 days trading horizon Ethereum is expected to under-perform the TELEFO. In addition to that, Ethereum is 4.93 times more volatile than TELEFO 495 17 JUL 30. It trades about -0.2 of its total potential returns per unit of risk. TELEFO 495 17 JUL 30 is currently generating about 0.5 per unit of volatility. If you would invest  8,415  in TELEFO 495 17 JUL 30 on December 24, 2024 and sell it today you would earn a total of  385.00  from holding TELEFO 495 17 JUL 30 or generate 4.58% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	17.19%
Values	Daily Returns

Ethereum  vs.  TELEFO 495 17 JUL 30

Ethereum

Risk-Adjusted Performance

Very Weak

Over the last 90 days Ethereum 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 technical indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Ethereum shareholders.

TELEFO 495 17

Risk-Adjusted Performance

Very Strong

Compared to the overall equity markets, risk-adjusted returns on investments in TELEFO 495 17 JUL 30 are ranked lower than 39 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unfluctuating basic indicators, TELEFO sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ethereum and TELEFO

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

The idea behind Ethereum and TELEFO 495 17 JUL 30 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.