Correlation Between Ethereum and KAISER

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

By analyzing existing cross correlation between Ethereum and KAISER FNDTN HOSPS, you can compare the effects of market volatilities on Ethereum and KAISER 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 KAISER. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and KAISER.

Diversification Opportunities for Ethereum and KAISER

-0.28

Correlation Coefficient

Ethereum  KAISER

Very good diversification

The 3 months correlation between Ethereum and KAISER is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and KAISER FNDTN HOSPS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KAISER FNDTN HOSPS 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 KAISER. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KAISER FNDTN HOSPS has no effect on the direction of Ethereum i.e., Ethereum and KAISER go up and down completely randomly.

Pair Corralation between Ethereum and KAISER

Assuming the 90 days trading horizon Ethereum is expected to under-perform the KAISER. In addition to that, Ethereum is 4.43 times more volatile than KAISER FNDTN HOSPS. It trades about -0.18 of its total potential returns per unit of risk. KAISER FNDTN HOSPS is currently generating about 0.11 per unit of volatility. If you would invest  8,150  in KAISER FNDTN HOSPS on December 25, 2024 and sell it today you would earn a total of  441.00  from holding KAISER FNDTN HOSPS or generate 5.41% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	90.48%
Values	Daily Returns

Ethereum  vs.  KAISER FNDTN HOSPS

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.

KAISER FNDTN HOSPS

Risk-Adjusted Performance

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in KAISER FNDTN HOSPS are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, KAISER is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Ethereum and KAISER

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

The idea behind Ethereum and KAISER FNDTN HOSPS 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.