Correlation Between Open Loot and EigenLayer

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

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

Diversification Opportunities for Open Loot and EigenLayer

0.03

Correlation Coefficient

Open Loot  EigenLayer

Significant diversification

The 3 months correlation between Open and EigenLayer is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Open Loot and EigenLayer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on EigenLayer and Open Loot 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 Open Loot are associated (or correlated) with EigenLayer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of EigenLayer has no effect on the direction of Open Loot i.e., Open Loot and EigenLayer go up and down completely randomly.

Pair Corralation between Open Loot and EigenLayer

Assuming the 90 days horizon Open Loot is expected to under-perform the EigenLayer. But the crypto coin apears to be less risky and, when comparing its historical volatility, Open Loot is 1.07 times less risky than EigenLayer. The crypto coin trades about -0.08 of its potential returns per unit of risk. The EigenLayer is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  92.00  in EigenLayer on April 21, 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	Insignificant
Accuracy	100.0%
Values	Daily Returns

Open Loot  vs.  EigenLayer

Open Loot

Risk-Adjusted Performance

Very Weak

Over the last 90 days Open Loot has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in August 2025. The latest tumult may also be a sign of longer-term up-swing for Open Loot shareholders.

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.

Pair Trading with Open Loot and EigenLayer

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

The idea behind Open Loot and EigenLayer 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.