Correlation Between Ether Fund and Ether ETF
Can any of the company-specific risk be diversified away by investing in both Ether Fund and Ether ETF 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 Ether Fund and Ether ETF into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ether Fund and Ether ETF CAD, you can compare the effects of market volatilities on Ether Fund and Ether ETF 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 Ether Fund with a short position of Ether ETF. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ether Fund and Ether ETF.
Diversification Opportunities for Ether Fund and Ether ETF
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Ether and Ether is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Ether Fund and Ether ETF CAD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ether ETF CAD and Ether Fund 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 Ether Fund are associated (or correlated) with Ether ETF. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ether ETF CAD has no effect on the direction of Ether Fund i.e., Ether Fund and Ether ETF go up and down completely randomly.
Pair Corralation between Ether Fund and Ether ETF
Assuming the 90 days trading horizon Ether Fund is expected to under-perform the Ether ETF. In addition to that, Ether Fund is 1.04 times more volatile than Ether ETF CAD. It trades about -0.01 of its total potential returns per unit of risk. Ether ETF CAD is currently generating about 0.03 per unit of volatility. If you would invest 1,660 in Ether ETF CAD on September 24, 2024 and sell it today you would earn a total of 17.00 from holding Ether ETF CAD or generate 1.02% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.24% |
Values | Daily Returns |
Ether Fund vs. Ether ETF CAD
Performance |
Timeline |
Ether Fund |
Ether ETF CAD |
Ether Fund and Ether ETF Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Ether Fund and Ether ETF
The main advantage of trading using opposite Ether Fund and Ether ETF positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ether Fund position performs unexpectedly, Ether ETF 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 Ether ETF will offset losses from the drop in Ether ETF's long position.Ether Fund vs. iShares SPTSX 60 | Ether Fund vs. iShares Core SP | Ether Fund vs. iShares Core SPTSX | Ether Fund vs. BMO Aggregate Bond |
Ether ETF vs. Ether Fund | Ether ETF vs. Ether Fund | Ether ETF vs. NBI High Yield | Ether ETF vs. NBI Unconstrained Fixed |
Check out your portfolio center.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.
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