Correlation Between Ethereum and Hyperliquid

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

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

Diversification Opportunities for Ethereum and Hyperliquid

0.41

Correlation Coefficient

Ethereum  Hyperliquid

Very weak diversification

The 3 months correlation between Ethereum and Hyperliquid is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Ethereum and Hyperliquid in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyperliquid and Ethereum 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 Ethereum are associated (or correlated) with Hyperliquid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyperliquid has no effect on the direction of Ethereum i.e., Ethereum and Hyperliquid go up and down completely randomly.

Pair Corralation between Ethereum and Hyperliquid

Assuming the 90 days trading horizon Ethereum is expected to generate 12.87 times less return on investment than Hyperliquid. But when comparing it to its historical volatility, Ethereum is 28.01 times less risky than Hyperliquid. It trades about 0.26 of its potential returns per unit of risk. Hyperliquid is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  1,848  in Hyperliquid on April 22, 2025 and sell it today you would earn a total of  2,605  from holding Hyperliquid or generate 140.96% return on investment over 90 days.

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

Ethereum  vs.  Hyperliquid

Ethereum

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Ethereum are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady technical indicators, Ethereum exhibited solid returns over the last few months and may actually be approaching a breakup point.

Hyperliquid

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Hyperliquid are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hyperliquid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Ethereum and Hyperliquid

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

The idea behind Ethereum and Hyperliquid 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.