Correlation Between Ethereum and Ardor

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Ethereum and Ardor 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 Ardor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ethereum and Ardor, you can compare the effects of market volatilities on Ethereum and Ardor 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 Ardor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ethereum and Ardor.

Diversification Opportunities for Ethereum and Ardor

0.76
  Correlation Coefficient

Poor diversification

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

Pair Corralation between Ethereum and Ardor

Assuming the 90 days trading horizon Ethereum is expected to generate 1.1 times more return on investment than Ardor. However, Ethereum is 1.1 times more volatile than Ardor. It trades about 0.06 of its potential returns per unit of risk. Ardor is currently generating about -0.05 per unit of risk. If you would invest  58,917  in Ethereum on September 3, 2022 and sell it today you would earn a total of  68,974  from holding Ethereum or generate 117.07% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy56.92%
ValuesDaily Returns

Ethereum  vs.  Ardor

 Performance (%) 
       Timeline  
Ethereum 
Ethereum Performance
0 of 100
Over the last 90 days Ethereum has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for Ethereum investors.

Ethereum Price Channel

Ardor 
Ardor Performance
0 of 100
Over the last 90 days Ardor 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 fundamental 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 Ardor investors.

Ardor Price Channel

Ethereum and Ardor Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Ethereum and Ardor

The main advantage of trading using opposite Ethereum and Ardor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ethereum position performs unexpectedly, Ardor 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 Ardor will offset losses from the drop in Ardor's long position.
Ethereum vs. Cardano
Ethereum vs. Avalanche
Ethereum vs. Cosmos
Ethereum vs. Internet Computer
The idea behind Ethereum and Ardor 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.
Ardor vs. Ethereum
Ardor vs. XRP
Ardor vs. Cardano
Ardor vs. Polygon
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 Bond Directory module to find actively traded corporate debentures issued by US companies.

Other Complementary Tools

Efficient Frontier
Plot and analyze your portfolio and positions against risk-return landscape of the market.
Go
Correlation Analysis
Reduce portfolio risk simply by holding instruments which are not perfectly correlated
Go
Premium Stories
Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope
Go
Options Analysis
Analyze and evaluate options and option chains as a potential hedge for your portfolios
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Insider Screener
Find insiders across different sectors to evaluate their impact on performance
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go