Correlation Between Wrapped EETH and NULS

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

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

Diversification Opportunities for Wrapped EETH and NULS

-0.5

Correlation Coefficient

Wrapped EETH  NULS

Very good diversification

The 3 months correlation between Wrapped and NULS is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped eETH and NULS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NULS and Wrapped EETH 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 Wrapped eETH are associated (or correlated) with NULS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NULS has no effect on the direction of Wrapped EETH i.e., Wrapped EETH and NULS go up and down completely randomly.

Pair Corralation between Wrapped EETH and NULS

Assuming the 90 days trading horizon Wrapped eETH is expected to generate 0.36 times more return on investment than NULS. However, Wrapped eETH is 2.78 times less risky than NULS. It trades about 0.28 of its potential returns per unit of risk. NULS is currently generating about -0.12 per unit of risk. If you would invest  189,845  in Wrapped eETH on April 24, 2025 and sell it today you would earn a total of  209,804  from holding Wrapped eETH or generate 110.51% return on investment over 90 days.

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

Wrapped eETH  vs.  NULS

Wrapped eETH

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Wrapped eETH are ranked lower than 22 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Wrapped EETH exhibited solid returns over the last few months and may actually be approaching a breakup point.

NULS

Risk-Adjusted Performance

Very Weak

Over the last 90 days NULS 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 NULS shareholders.

Pair Trading with Wrapped EETH and NULS

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

The idea behind Wrapped eETH and NULS 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.