Correlation Between Siren Nasdaq and Hashdex Nasdaq
Can any of the company-specific risk be diversified away by investing in both Siren Nasdaq and Hashdex Nasdaq 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 Siren Nasdaq and Hashdex Nasdaq into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siren Nasdaq NexGen and Hashdex Nasdaq Crypto, you can compare the effects of market volatilities on Siren Nasdaq and Hashdex Nasdaq 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 Siren Nasdaq with a short position of Hashdex Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siren Nasdaq and Hashdex Nasdaq.
Diversification Opportunities for Siren Nasdaq and Hashdex Nasdaq
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siren and Hashdex is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Siren Nasdaq NexGen and Hashdex Nasdaq Crypto in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hashdex Nasdaq Crypto and Siren Nasdaq 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 Siren Nasdaq NexGen are associated (or correlated) with Hashdex Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hashdex Nasdaq Crypto has no effect on the direction of Siren Nasdaq i.e., Siren Nasdaq and Hashdex Nasdaq go up and down completely randomly.
Pair Corralation between Siren Nasdaq and Hashdex Nasdaq
Given the investment horizon of 90 days Siren Nasdaq is expected to generate 2.19 times less return on investment than Hashdex Nasdaq. In addition to that, Siren Nasdaq is 1.24 times more volatile than Hashdex Nasdaq Crypto. It trades about 0.04 of its total potential returns per unit of risk. Hashdex Nasdaq Crypto is currently generating about 0.11 per unit of volatility. If you would invest 2,245 in Hashdex Nasdaq Crypto on March 25, 2025 and sell it today you would earn a total of 383.00 from holding Hashdex Nasdaq Crypto or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siren Nasdaq NexGen vs. Hashdex Nasdaq Crypto
Performance |
| Timeline |
| Siren Nasdaq NexGen |
| Hashdex Nasdaq Crypto |
Siren Nasdaq and Hashdex Nasdaq Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siren Nasdaq and Hashdex Nasdaq
The main advantage of trading using opposite Siren Nasdaq and Hashdex Nasdaq positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siren Nasdaq position performs unexpectedly, Hashdex Nasdaq 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 Hashdex Nasdaq will offset losses from the drop in Hashdex Nasdaq's long position.| Siren Nasdaq vs. Amplify Transformational Data | Siren Nasdaq vs. First Trust Indxx | Siren Nasdaq vs. Global X Robotics | Siren Nasdaq vs. Bitwise Crypto Industry |
| Hashdex Nasdaq vs. Grayscale Funds Trust | Hashdex Nasdaq vs. ProShares Trust | Hashdex Nasdaq vs. iShares Ethereum Trust | Hashdex Nasdaq vs. ProShares Trust |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |