Correlation Between EigenLayer and OGN

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

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

Diversification Opportunities for EigenLayer and OGN

0.47

Correlation Coefficient

EigenLayer  OGN

Very weak diversification

The 3 months correlation between EigenLayer and OGN is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and OGN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OGN 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 OGN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OGN has no effect on the direction of EigenLayer i.e., EigenLayer and OGN go up and down completely randomly.

Pair Corralation between EigenLayer and OGN

Assuming the 90 days trading horizon EigenLayer is expected to generate 5.1 times more return on investment than OGN. However, EigenLayer is 5.1 times more volatile than OGN. It trades about 0.04 of its potential returns per unit of risk. OGN is currently generating about 0.02 per unit of risk. If you would invest  284.00  in EigenLayer on April 20, 2025 and sell it today you would lose (136.00) from holding EigenLayer or give up 47.89% of portfolio value over 90 days.

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

EigenLayer  vs.  OGN

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.

OGN

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in OGN are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, OGN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with EigenLayer and OGN

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

The idea behind EigenLayer and OGN 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.