Ethereum PoW Correlations
| ETHW Crypto | USD 3.55 0.18 4.83% |
The correlation of Ethereum PoW is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ethereum PoW moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ethereum PoW moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Average diversification
The correlation between Ethereum PoW and NYA is 0.13 (i.e., Average diversification) for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum PoW and NYA in the same portfolio, assuming nothing else is changed. Please note that Ethereum PoW is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.
Ethereum |
The ability to find closely correlated positions to Ethereum PoW could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ethereum PoW when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ethereum PoW - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ethereum PoW to buy it.
Moving together with Ethereum Crypto Coin
| 0.86 | BTC | Bitcoin | PairCorr |
| 0.76 | SOL | Solana | PairCorr |
| 0.68 | TONCOIN | Open Network | PairCorr |
| 0.68 | STETH | Staked Ether | PairCorr |
| 0.92 | DOGE | Dogecoin | PairCorr |
| 0.89 | WBTC | Wrapped Bitcoin | PairCorr |
| 0.89 | BCH | Bitcoin Cash | PairCorr |
Moving against Ethereum Crypto Coin
Related Correlations Analysis
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Correlation Matchups
Over a given time period, the two securities move together when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.High positive correlations
| High negative correlations
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Risk-Adjusted Indicators
There is a big difference between Ethereum Crypto Coin performing well and Ethereum PoW Cryptocurrency doing well as a business compared to the competition. There are so many exceptions to the norm that investors cannot definitively determine what's good or bad unless they analyze Ethereum PoW's multiple risk-adjusted performance indicators across the competitive landscape. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.| Mean Deviation | Jensen Alpha | Sortino Ratio | Treynor Ratio | Semi Deviation | Expected Shortfall | Potential Upside | Value @Risk | Maximum Drawdown | ||
|---|---|---|---|---|---|---|---|---|---|---|
| BTC | 2.64 | 0.58 | 0.19 | 0.71 | 2.52 | 9.35 | 16.75 | |||
| SOL | 3.87 | 0.76 | 0.16 | 0.85 | 4.28 | 9.74 | 24.05 | |||
| XRP | 2.79 | 0.06 | 0.01 | 0.12 | 3.61 | 6.00 | 24.02 | |||
| TONCOIN | 4.93 | 1.78 | 0.35 | 2.60 | 3.95 | 13.64 | 51.05 | |||
| STETH | 2.81 | 0.37 | 0.10 | 0.35 | 3.45 | 7.91 | 18.61 | |||
| DOGE | 5.35 | 1.22 | 0.17 | 0.75 | 5.01 | 15.38 | 36.28 | |||
| AVAX | 4.11 | 0.18 | 0.04 | 0.18 | 5.13 | 7.34 | 43.53 | |||
| LINK | 3.19 | (0.36) | 0.00 | (0.25) | 0.00 | 6.78 | 24.40 | |||
| ENA | 2.69 | (0.38) | 0.00 | (0.19) | 0.00 | 8.33 | 35.08 | |||
| STARK | 31.00 | 12.62 | 2.52 | 0.40 | 4.06 | 11.59 | 1,017 |
Be your own crypto manager
Our tools can tell you how much better you can do entering a position in Ethereum PoW without increasing your portfolio risk or giving up the expected return. As an individual cryptocurrency investor, you need to find a reliable way to track the performance of all your tokens in a consistent way. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall cryptocurrency portfolio.Did you try this?
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How to invest in Ethereum PoW
You need to understand the risk of getting into digital currencies such as ETHW before investing. The dangers of trading cryptocurrencies are mainly related to their volatility. They are high-risk, speculative, susceptible to errors and hacking, mostly unregulated, and can be affected by forks or other discontinuation events. As an investor, you must understand these perils before you start trading. You can get a long position in Ethereum PoW in four ways:Buy ETHW through an exchange
Get yourself a crypto wallet before embarking on your Ethereum PoW journey. Crypto wallets exist as desktop applications, mobile apps, or websites, allowing you to secure your tokens or digital coins. Your crypto wallet stores the private keys to your tokens on the blockchain. Once you have a wallet, visit a reputable exchange and sign up for an account. You will need to complete the KYC process to be allowed to purchase Ethereum PoW. But before you can buy the tokens, you have to provide a photo of your ID and proof of address, as well as a selfie. The platform will also require you to secure your account with 2FA before you can fund your account and buy the digital coins.Purchase fractions of Ethereum PoW through an exchange
You don't have to buy a full token when starting out since ETHW is divisible by several decimal places. This allows you to purchase tiny fractions worth cents, but because of network fees, most platforms have a minimum figure, such as $10. You can then build your portfolio with time as you gain more confidence and learn the ropes of crypto trading.Trade Ethereum PoW through a broker
If you don't want to store your Ethereum Crypto Coin yourself for one reason or another, you can still trade through a broker. Brokers hold your tokens and trade frequently to generate profits. In addition, many brokerage platforms offer derivative products, such as contracts for difference, that enable you to speculate on price movements. Such products also allow brokers to accommodate leverage trading, potentially multiplying your profits.Invest in ETHW through an exchange-traded fund (ETF)
You can also invest in ETHW through an exchange-traded fund (ETF). This instrument helps track an asset or select assets. You can buy and sell them on stock exchanges, making them the best option for an average investor. Some ETFs may comprise several coins to spread risk across a portfolio. Such ETFs are created and controlled by picking a basket with several coins, while favoring those that have performed well in the recent past.Investing Ideas
In addition to having Ethereum PoW in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Thematic Opportunities
Explore Investment Opportunities
Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Ethereum PoW. Also, note that the market value of any cryptocurrency could be tightly coupled with the direction of predictive economic indicators such as signals in board of governors. You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.