Correlation Between Staked Ether and TRON

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

Diversification Opportunities for Staked Ether and TRON

0.69
  Correlation Coefficient

Poor diversification

The 3 months correlation between Staked and TRON is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and TRON in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TRON and Staked Ether 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 Staked Ether are associated (or correlated) with TRON. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TRON has no effect on the direction of Staked Ether i.e., Staked Ether and TRON go up and down completely randomly.

Pair Corralation between Staked Ether and TRON

Assuming the 90 days trading horizon Staked Ether is expected to generate 1.09 times more return on investment than TRON. However, Staked Ether is 1.09 times more volatile than TRON. It trades about 0.1 of its potential returns per unit of risk. TRON is currently generating about -0.22 per unit of risk. If you would invest  118,010  in Staked Ether on September 9, 2022 and sell it today you would earn a total of  7,658  from holding Staked Ether or generate 6.49% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Staked Ether  vs.  TRON

 Performance (%) 
       Timeline  
Staked Ether 
Staked Performance
0 of 100
Over the last 90 days Staked Ether has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for Staked Ether investors.

Staked Price Channel

TRON 
TRON Performance
0 of 100
Over the last 90 days TRON has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in January 2023. The current disturbance may also be a sign of long term up-swing for TRON investors.

TRON Price Channel

Staked Ether and TRON Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Staked Ether and TRON

The main advantage of trading using opposite Staked Ether and TRON positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, TRON 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 TRON will offset losses from the drop in TRON's long position.
Staked Ether vs. XRP
Staked Ether vs. Polygon
Staked Ether vs. Solana
Staked Ether vs. Chainlink
The idea behind Staked Ether and TRON 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.
TRON vs. XRP
TRON vs. Polygon
TRON vs. Solana
TRON vs. Chainlink
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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