Correlation Between EigenLayer and CODY

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

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

Diversification Opportunities for EigenLayer and CODY

0.0

Correlation Coefficient

EigenLayer  CODY

Pay attention - limited upside

The 3 months correlation between EigenLayer and CODY is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and CODY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CODY and EigenLayer 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 EigenLayer are associated (or correlated) with CODY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CODY has no effect on the direction of EigenLayer i.e., EigenLayer and CODY go up and down completely randomly.

Pair Corralation between EigenLayer and CODY

If you would invest  96.00  in EigenLayer on April 23, 2025 and sell it today you would earn a total of  53.00  from holding EigenLayer or generate 55.21% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

EigenLayer  vs.  CODY

EigenLayer

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EigenLayer are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, EigenLayer exhibited solid returns over the last few months and may actually be approaching a breakup point.

CODY

Risk-Adjusted Performance

Very Weak

Over the last 90 days CODY has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, CODY is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with EigenLayer and CODY

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

The idea behind EigenLayer and CODY 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.