Correlation Between EQT AB and CoinShares International

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

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

Diversification Opportunities for EQT AB and CoinShares International

0.8

Correlation Coefficient

EQT AB  CoinShares International

Very poor diversification

The 3 months correlation between EQT and CoinShares is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding EQT AB and CoinShares International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CoinShares International and EQT AB 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 EQT AB are associated (or correlated) with CoinShares International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CoinShares International has no effect on the direction of EQT AB i.e., EQT AB and CoinShares International go up and down completely randomly.

Pair Corralation between EQT AB and CoinShares International

Assuming the 90 days trading horizon EQT AB is expected to generate 2.32 times less return on investment than CoinShares International. But when comparing it to its historical volatility, EQT AB is 1.5 times less risky than CoinShares International. It trades about 0.19 of its potential returns per unit of risk. CoinShares International is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest  7,420  in CoinShares International on April 24, 2025 and sell it today you would earn a total of  4,420  from holding CoinShares International or generate 59.57% return on investment over 90 days.

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

EQT AB  vs.  CoinShares International

EQT AB

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in EQT AB are ranked lower than 15 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak basic indicators, EQT AB unveiled solid returns over the last few months and may actually be approaching a breakup point.

CoinShares International

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in CoinShares International are ranked lower than 23 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, CoinShares International unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EQT AB and CoinShares International

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

The idea behind EQT AB and CoinShares International 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 Stocks Directory module to find actively traded stocks across global markets.