Correlation Between GT and Wrapped Beacon
Can any of the company-specific risk be diversified away by investing in both GT and Wrapped Beacon 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 GT and Wrapped Beacon into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GT and Wrapped Beacon ETH, you can compare the effects of market volatilities on GT and Wrapped Beacon 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 GT with a short position of Wrapped Beacon. Check out your portfolio center. Please also check ongoing floating volatility patterns of GT and Wrapped Beacon.
Diversification Opportunities for GT and Wrapped Beacon
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GT and Wrapped is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding GT and Wrapped Beacon ETH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wrapped Beacon ETH and GT 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 GT are associated (or correlated) with Wrapped Beacon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wrapped Beacon ETH has no effect on the direction of GT i.e., GT and Wrapped Beacon go up and down completely randomly.
Pair Corralation between GT and Wrapped Beacon
Assuming the 90 days horizon GT is expected to under-perform the Wrapped Beacon. But the crypto coin apears to be less risky and, when comparing its historical volatility, GT is 1.98 times less risky than Wrapped Beacon. The crypto coin trades about -0.15 of its potential returns per unit of risk. The Wrapped Beacon ETH is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 192,077 in Wrapped Beacon ETH on April 26, 2025 and sell it today you would earn a total of 206,550 from holding Wrapped Beacon ETH or generate 107.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GT vs. Wrapped Beacon ETH
Performance |
| Timeline |
| GT |
| Wrapped Beacon ETH |
GT and Wrapped Beacon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GT and Wrapped Beacon
The main advantage of trading using opposite GT and Wrapped Beacon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GT position performs unexpectedly, Wrapped Beacon 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 Wrapped Beacon will offset losses from the drop in Wrapped Beacon's long position.The idea behind GT and Wrapped Beacon ETH 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.| Wrapped Beacon vs. Wrapped QUIL | Wrapped Beacon vs. Wrapped TAO | Wrapped Beacon vs. Wrapped eETH | Wrapped Beacon vs. Fwog |
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.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |