Correlation Between AdvisorShares Gerber and REX Crypto
Can any of the company-specific risk be diversified away by investing in both AdvisorShares Gerber and REX Crypto 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 AdvisorShares Gerber and REX Crypto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AdvisorShares Gerber Kawasaki and REX Crypto Equity, you can compare the effects of market volatilities on AdvisorShares Gerber and REX Crypto 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 AdvisorShares Gerber with a short position of REX Crypto. Check out your portfolio center. Please also check ongoing floating volatility patterns of AdvisorShares Gerber and REX Crypto.
Diversification Opportunities for AdvisorShares Gerber and REX Crypto
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AdvisorShares and REX is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding AdvisorShares Gerber Kawasaki and REX Crypto Equity in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on REX Crypto Equity and AdvisorShares Gerber 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 AdvisorShares Gerber Kawasaki are associated (or correlated) with REX Crypto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of REX Crypto Equity has no effect on the direction of AdvisorShares Gerber i.e., AdvisorShares Gerber and REX Crypto go up and down completely randomly.
Pair Corralation between AdvisorShares Gerber and REX Crypto
Allowing for the 90-day total investment horizon AdvisorShares Gerber is expected to generate 1.8 times less return on investment than REX Crypto. But when comparing it to its historical volatility, AdvisorShares Gerber Kawasaki is 1.22 times less risky than REX Crypto. It trades about 0.1 of its potential returns per unit of risk. REX Crypto Equity is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,749 in REX Crypto Equity on July 20, 2025 and sell it today you would earn a total of 414.00 from holding REX Crypto Equity or generate 11.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AdvisorShares Gerber Kawasaki vs. REX Crypto Equity
Performance |
| Timeline |
| AdvisorShares Gerber |
| REX Crypto Equity |
AdvisorShares Gerber and REX Crypto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AdvisorShares Gerber and REX Crypto
The main advantage of trading using opposite AdvisorShares Gerber and REX Crypto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AdvisorShares Gerber position performs unexpectedly, REX Crypto 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 REX Crypto will offset losses from the drop in REX Crypto's long position.The idea behind AdvisorShares Gerber Kawasaki and REX Crypto Equity 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.
| REX Crypto vs. iShares Dividend and | REX Crypto vs. Martin Currie Sustainable | REX Crypto vs. AdvisorShares Gerber Kawasaki | REX Crypto vs. Roundhill Ball Metaverse |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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