Correlation Between EOSDAC and FIL

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

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

Diversification Opportunities for EOSDAC and FIL

0.18

Correlation Coefficient

EOSDAC  FIL

Average diversification

The 3 months correlation between EOSDAC and FIL is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding EOSDAC and FIL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FIL and EOSDAC 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 EOSDAC are associated (or correlated) with FIL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FIL has no effect on the direction of EOSDAC i.e., EOSDAC and FIL go up and down completely randomly.

Pair Corralation between EOSDAC and FIL

Assuming the 90 days trading horizon EOSDAC is expected to generate 0.95 times more return on investment than FIL. However, EOSDAC is 1.05 times less risky than FIL. It trades about 0.26 of its potential returns per unit of risk. FIL is currently generating about -0.03 per unit of risk. If you would invest  0.03  in EOSDAC on May 18, 2025 and sell it today you would earn a total of  0.02  from holding EOSDAC or generate 79.84% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

EOSDAC  vs.  FIL

EOSDAC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOSDAC sustained solid returns over the last few months and may actually be approaching a breakup point.

FIL

Risk-Adjusted Performance

Weakest

Over the last 90 days FIL has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's essential indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for FIL shareholders.

Pair Trading with EOSDAC and FIL

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

The idea behind EOSDAC and FIL 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.

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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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.