Correlation Between EigenLayer and CHP

Can any of the company-specific risk be diversified away by investing in both EigenLayer and CHP 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 EigenLayer and CHP into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between EigenLayer and CHP, you can compare the effects of market volatilities on EigenLayer and CHP 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 EigenLayer with a short position of CHP. Check out your portfolio center. Please also check ongoing floating volatility patterns of EigenLayer and CHP.

Diversification Opportunities for EigenLayer and CHP

-0.04

Correlation Coefficient

EigenLayer  CHP

Good diversification

The 3 months correlation between EigenLayer and CHP is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and CHP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHP and EigenLayer 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 EigenLayer are associated (or correlated) with CHP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHP has no effect on the direction of EigenLayer i.e., EigenLayer and CHP go up and down completely randomly.

Pair Corralation between EigenLayer and CHP

Assuming the 90 days trading horizon EigenLayer is expected to under-perform the CHP. In addition to that, EigenLayer is 1.78 times more volatile than CHP. It trades about 0.0 of its total potential returns per unit of risk. CHP is currently generating about 0.16 per unit of volatility. If you would invest  0.00  in CHP on May 10, 2025 and sell it today you would earn a total of  0.00  from holding CHP or generate 44.44% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

EigenLayer  vs.  CHP

EigenLayer

Risk-Adjusted Performance

Weakest

Over the last 90 days EigenLayer has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, EigenLayer is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

CHP

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in CHP are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CHP exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EigenLayer and CHP

The main advantage of trading using opposite EigenLayer and CHP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EigenLayer position performs unexpectedly, CHP 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 CHP will offset losses from the drop in CHP's long position.

The idea behind EigenLayer and CHP 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .