Correlation Between EigenLayer and IoTeX Network

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

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

Diversification Opportunities for EigenLayer and IoTeX Network

0.61

Correlation Coefficient

EigenLayer  IoTeX Network

Poor diversification

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

Pair Corralation between EigenLayer and IoTeX Network

Assuming the 90 days trading horizon EigenLayer is expected to generate 1.53 times more return on investment than IoTeX Network. However, EigenLayer is 1.53 times more volatile than IoTeX Network. It trades about 0.13 of its potential returns per unit of risk. IoTeX Network is currently generating about 0.02 per unit of risk. If you would invest  92.00  in EigenLayer on April 20, 2025 and sell it today you would earn a total of  62.00  from holding EigenLayer or generate 67.39% return on investment over 90 days.

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

EigenLayer  vs.  IoTeX Network

EigenLayer

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in EigenLayer are ranked lower than 9 (%) 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.

IoTeX Network

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in IoTeX Network are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, IoTeX Network may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EigenLayer and IoTeX Network

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

The idea behind EigenLayer and IoTeX Network 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.