Correlation Between Core and EOSDAC

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

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

Diversification Opportunities for Core and EOSDAC

-0.26

Correlation Coefficient

Core  EOSDAC

Very good diversification

The 3 months correlation between Core and EOSDAC is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Core and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and Core 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 Core are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of Core i.e., Core and EOSDAC go up and down completely randomly.

Pair Corralation between Core and EOSDAC

Assuming the 90 days trading horizon Core is expected to under-perform the EOSDAC. In addition to that, Core is 1.22 times more volatile than EOSDAC. It trades about -0.04 of its total potential returns per unit of risk. EOSDAC is currently generating about 0.21 per unit of volatility. If you would invest  0.02  in EOSDAC on April 20, 2025 and sell it today you would earn a total of  0.01  from holding EOSDAC or generate 62.44% return on investment over 90 days.

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

Core  vs.  EOSDAC

Core

Risk-Adjusted Performance

Very Weak

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

EOSDAC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 16 (%) 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.

Pair Trading with Core and EOSDAC

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

The idea behind Core and EOSDAC 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.