Correlation Between Wrapped Bitcoin and Staked Ether
Can any of the company-specific risk be diversified away by investing in both Wrapped Bitcoin and Staked Ether 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 Bitcoin and Staked Ether into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wrapped Bitcoin and Staked Ether, you can compare the effects of market volatilities on Wrapped Bitcoin and Staked Ether 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 Bitcoin with a short position of Staked Ether. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wrapped Bitcoin and Staked Ether.
Diversification Opportunities for Wrapped Bitcoin and Staked Ether
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wrapped and Staked is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Wrapped Bitcoin and Staked Ether in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Staked Ether and Wrapped Bitcoin 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 Bitcoin are associated (or correlated) with Staked Ether. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Staked Ether has no effect on the direction of Wrapped Bitcoin i.e., Wrapped Bitcoin and Staked Ether go up and down completely randomly.
Pair Corralation between Wrapped Bitcoin and Staked Ether
Assuming the 90 days trading horizon Wrapped Bitcoin is expected to generate 33.4 times less return on investment than Staked Ether. But when comparing it to its historical volatility, Wrapped Bitcoin is 2.32 times less risky than Staked Ether. It trades about 0.01 of its potential returns per unit of risk. Staked Ether is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 281,446 in Staked Ether on June 7, 2025 and sell it today you would earn a total of 149,173 from holding Staked Ether or generate 53.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wrapped Bitcoin vs. Staked Ether
Performance |
| Timeline |
| Wrapped Bitcoin |
| Staked Ether |
Wrapped Bitcoin and Staked Ether Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wrapped Bitcoin and Staked Ether
The main advantage of trading using opposite Wrapped Bitcoin and Staked Ether positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wrapped Bitcoin position performs unexpectedly, Staked Ether 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 Staked Ether will offset losses from the drop in Staked Ether's long position.| Wrapped Bitcoin vs. Staked Ether | Wrapped Bitcoin vs. Cronos | Wrapped Bitcoin vs. Monero | Wrapped Bitcoin vs. Tether |
| 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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