Correlation Between Staked Ether and EXP

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

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

Diversification Opportunities for Staked Ether and EXP

0.61

Correlation Coefficient

Staked Ether  EXP

Poor diversification

The 3 months correlation between Staked and EXP is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and EXP in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EXP 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 EXP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EXP has no effect on the direction of Staked Ether i.e., Staked Ether and EXP go up and down completely randomly.

Pair Corralation between Staked Ether and EXP

Assuming the 90 days trading horizon Staked Ether is expected to generate 2.12 times less return on investment than EXP. In addition to that, Staked Ether is 1.79 times more volatile than EXP. It trades about 0.01 of its total potential returns per unit of risk. EXP is currently generating about 0.05 per unit of volatility. If you would invest  0.04  in EXP on February 16, 2025 and sell it today you would earn a total of  0.00  from holding EXP or generate 8.09% return on investment over 90 days.

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

Staked Ether  vs.  EXP

Staked Ether

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental indicators, Staked Ether is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

EXP

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in EXP are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, EXP may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Pair Trading with Staked Ether and EXP

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

The idea behind Staked Ether and EXP 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.