Correlation Between Staked Ether and Pitney Bowes

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

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

Diversification Opportunities for Staked Ether and Pitney Bowes

0.13

Correlation Coefficient

Staked Ether  Pitney Bowes

Average diversification

The 3 months correlation between Staked and Pitney is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Pitney Bowes in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pitney Bowes 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 Pitney Bowes. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pitney Bowes has no effect on the direction of Staked Ether i.e., Staked Ether and Pitney Bowes go up and down completely randomly.

Pair Corralation between Staked Ether and Pitney Bowes

Assuming the 90 days trading horizon Staked Ether is expected to under-perform the Pitney Bowes. But the crypto coin apears to be less risky and, when comparing its historical volatility, Staked Ether is 1.0 times less risky than Pitney Bowes. The crypto coin trades about -0.03 of its potential returns per unit of risk. The Pitney Bowes is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest  423.00  in Pitney Bowes on January 31, 2024 and sell it today you would lose (10.00) from holding Pitney Bowes or give up 2.36% of portfolio value over 90 days.

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

Staked Ether  vs.  Pitney Bowes

Staked Ether

Risk-Adjusted Performance

11 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Staked Ether are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Staked Ether exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pitney Bowes

Risk-Adjusted Performance

1 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Pitney Bowes are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite fairly strong fundamental drivers, Pitney Bowes is not utilizing all of its potentials. The current stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Staked Ether and Pitney Bowes

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

The idea behind Staked Ether and Pitney Bowes 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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.