Correlation Between FileCoin and EOSDAC

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

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

Diversification Opportunities for FileCoin and EOSDAC

0.05

Correlation Coefficient

FileCoin  EOSDAC

Significant diversification

The 3 months correlation between FileCoin and EOSDAC is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding FileCoin and EOSDAC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EOSDAC and FileCoin 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 FileCoin are associated (or correlated) with EOSDAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EOSDAC has no effect on the direction of FileCoin i.e., FileCoin and EOSDAC go up and down completely randomly.

Pair Corralation between FileCoin and EOSDAC

Assuming the 90 days trading horizon FileCoin is expected to generate 6.47 times less return on investment than EOSDAC. In addition to that, FileCoin is 1.07 times more volatile than EOSDAC. It trades about 0.03 of its total potential returns per unit of risk. EOSDAC is currently generating about 0.21 per unit of volatility. If you would invest  0.02  in EOSDAC on April 21, 2025 and sell it today you would earn a total of  0.01  from holding EOSDAC or generate 62.44% return on investment over 90 days.

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

FileCoin  vs.  EOSDAC

FileCoin

Risk-Adjusted Performance

Weak

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

EOSDAC

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in EOSDAC are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, EOSDAC sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with FileCoin and EOSDAC

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

The idea behind FileCoin and EOSDAC 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.