Correlation Between Staked Ether and Ethereum
Can any of the company-specific risk be diversified away by investing in both Staked Ether and Ethereum 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 Staked Ether and Ethereum into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Staked Ether and Ethereum, you can compare the effects of market volatilities on Staked Ether and Ethereum 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 Staked Ether with a short position of Ethereum. Check out your portfolio center. Please also check ongoing floating volatility patterns of Staked Ether and Ethereum.
Diversification Opportunities for Staked Ether and Ethereum
1.0 | Correlation Coefficient |
No risk reduction
The 3 months correlation between Staked and Ethereum is 1.0. Overlapping area represents the amount of risk that can be diversified away by holding Staked Ether and Ethereum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ethereum and Staked Ether 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 Staked Ether are associated (or correlated) with Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ethereum has no effect on the direction of Staked Ether i.e., Staked Ether and Ethereum go up and down completely randomly.
Pair Corralation between Staked Ether and Ethereum
Assuming the 90 days trading horizon Staked Ether is expected to generate 1.0 times less return on investment than Ethereum. But when comparing it to its historical volatility, Staked Ether is 1.0 times less risky than Ethereum. It trades about 0.18 of its potential returns per unit of risk. Ethereum is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 281,615 in Ethereum on June 9, 2025 and sell it today you would earn a total of 146,005 from holding Ethereum or generate 51.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Staked Ether vs. Ethereum
Performance |
| Timeline |
| Staked Ether |
| Ethereum |
Staked Ether and Ethereum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Staked Ether and Ethereum
The main advantage of trading using opposite Staked Ether and Ethereum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Staked Ether position performs unexpectedly, Ethereum 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 Ethereum will offset losses from the drop in Ethereum's long position.| Staked Ether vs. Cronos | Staked Ether vs. Wrapped Bitcoin | Staked Ether vs. Monero | Staked Ether vs. Tether |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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