Correlation Between Staked Ether and Cetus Protocol

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

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

Diversification Opportunities for Staked Ether and Cetus Protocol

0.52

Correlation Coefficient

Staked Ether  Cetus Protocol

Very weak diversification

The 3 months correlation between Staked and Cetus is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Cetus Protocol in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cetus Protocol and Staked Ether 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 Staked Ether are associated (or correlated) with Cetus Protocol. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cetus Protocol has no effect on the direction of Staked Ether i.e., Staked Ether and Cetus Protocol go up and down completely randomly.

Pair Corralation between Staked Ether and Cetus Protocol

Assuming the 90 days trading horizon Staked Ether is expected to generate 0.5 times more return on investment than Cetus Protocol. However, Staked Ether is 2.0 times less risky than Cetus Protocol. It trades about -0.04 of its potential returns per unit of risk. Cetus Protocol is currently generating about -0.04 per unit of risk. If you would invest  384,361  in Staked Ether on March 3, 2025 and sell it today you would lose (131,310) from holding Staked Ether or give up 34.16% of portfolio value over 90 days.

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

Staked Ether  vs.  Cetus Protocol

Staked Ether

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Staked Ether exhibited solid returns over the last few months and may actually be approaching a breakup point.

Cetus Protocol

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Cetus Protocol are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Cetus Protocol exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Staked Ether and Cetus Protocol

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

The idea behind Staked Ether and Cetus Protocol 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.