Correlation Between Swell Network and EigenLayer

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Can any of the company-specific risk be diversified away by investing in both Swell Network and EigenLayer 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 Swell Network and EigenLayer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Swell Network and EigenLayer, you can compare the effects of market volatilities on Swell Network and EigenLayer 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 Swell Network with a short position of EigenLayer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Swell Network and EigenLayer.

Diversification Opportunities for Swell Network and EigenLayer

0.14
  Correlation Coefficient

Average diversification

The 3 months correlation between Swell and EigenLayer is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding Swell Network and EigenLayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EigenLayer and Swell Network 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 Swell Network are associated (or correlated) with EigenLayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EigenLayer has no effect on the direction of Swell Network i.e., Swell Network and EigenLayer go up and down completely randomly.

Pair Corralation between Swell Network and EigenLayer

Assuming the 90 days trading horizon Swell Network is expected to under-perform the EigenLayer. But the crypto coin apears to be less risky and, when comparing its historical volatility, Swell Network is 1.12 times less risky than EigenLayer. The crypto coin trades about -0.31 of its potential returns per unit of risk. The EigenLayer is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  339.00  in EigenLayer on October 27, 2024 and sell it today you would lose (65.00) from holding EigenLayer or give up 19.17% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Swell Network  vs.  EigenLayer

 Performance 
       Timeline  
Swell Network 

Risk-Adjusted Performance

9 of 100

 
Weak
 
Strong
OK
Compared to the overall equity markets, risk-adjusted returns on investments in Swell Network are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Swell Network exhibited solid returns over the last few months and may actually be approaching a breakup point.
EigenLayer 

Risk-Adjusted Performance

2 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in EigenLayer are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, EigenLayer exhibited solid returns over the last few months and may actually be approaching a breakup point.

Swell Network and EigenLayer Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Swell Network and EigenLayer

The main advantage of trading using opposite Swell Network and EigenLayer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Swell Network position performs unexpectedly, EigenLayer 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 EigenLayer will offset losses from the drop in EigenLayer's long position.
The idea behind Swell Network and EigenLayer 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.
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 CEOs Directory module to screen CEOs from public companies around the world.

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