Correlation Between Hedera Hashgraph and EOS
Can any of the company-specific risk be diversified away by investing in both Hedera Hashgraph and EOS 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 Hedera Hashgraph and EOS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hedera Hashgraph and EOS, you can compare the effects of market volatilities on Hedera Hashgraph and EOS 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 Hedera Hashgraph with a short position of EOS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hedera Hashgraph and EOS.
Diversification Opportunities for Hedera Hashgraph and EOS
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hedera and EOS is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Hedera Hashgraph and EOS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOS and Hedera Hashgraph 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 Hedera Hashgraph are associated (or correlated) with EOS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOS has no effect on the direction of Hedera Hashgraph i.e., Hedera Hashgraph and EOS go up and down completely randomly.
Pair Corralation between Hedera Hashgraph and EOS
Assuming the 90 days trading horizon Hedera Hashgraph is expected to generate 3.03 times more return on investment than EOS. However, Hedera Hashgraph is 3.03 times more volatile than EOS. It trades about 0.16 of its potential returns per unit of risk. EOS is currently generating about -0.12 per unit of risk. If you would invest 11.00 in Hedera Hashgraph on January 26, 2024 and sell it today you would earn a total of 5.00 from holding Hedera Hashgraph or generate 45.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hedera Hashgraph vs. EOS
Performance |
| Timeline |
| Hedera Hashgraph |
| EOS |
Hedera Hashgraph and EOS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hedera Hashgraph and EOS
The main advantage of trading using opposite Hedera Hashgraph and EOS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hedera Hashgraph position performs unexpectedly, EOS 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 EOS will offset losses from the drop in EOS's long position.| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. Staked Ether |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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