Correlation Between Ethereum and HIMARK

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

By analyzing existing cross correlation between Ethereum and HIMARK 145 10 MAY 26, you can compare the effects of market volatilities on Ethereum and HIMARK 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 HIMARK. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and HIMARK.

Diversification Opportunities for Ethereum and HIMARK

-0.76

Correlation Coefficient

Ethereum  HIMARK

Pay attention - limited upside

The 3 months correlation between Ethereum and HIMARK is -0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and HIMARK 145 10 MAY 26 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HIMARK 145 10 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 HIMARK. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HIMARK 145 10 has no effect on the direction of Ethereum i.e., Ethereum and HIMARK go up and down completely randomly.

Pair Corralation between Ethereum and HIMARK

Assuming the 90 days trading horizon Ethereum is expected to under-perform the HIMARK. In addition to that, Ethereum is 14.64 times more volatile than HIMARK 145 10 MAY 26. It trades about -0.2 of its total potential returns per unit of risk. HIMARK 145 10 MAY 26 is currently generating about -0.04 per unit of volatility. If you would invest  9,477  in HIMARK 145 10 MAY 26 on December 24, 2024 and sell it today you would lose (31.00) from holding HIMARK 145 10 MAY 26 or give up 0.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	40.63%
Values	Daily Returns

Ethereum  vs.  HIMARK 145 10 MAY 26

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.

HIMARK 145 10

Risk-Adjusted Performance

Very Weak

Over the last 90 days HIMARK 145 10 MAY 26 has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, HIMARK is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ethereum and HIMARK

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

The idea behind Ethereum and HIMARK 145 10 MAY 26 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.