Correlation Between MONA and Status Network
Can any of the company-specific risk be diversified away by investing in both MONA and Status Network 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 MONA and Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between MONA and Status Network Token, you can compare the effects of market volatilities on MONA and Status Network 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 MONA with a short position of Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of MONA and Status Network.
Diversification Opportunities for MONA and Status Network
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between MONA and Status is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding MONA and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token and MONA 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 MONA are associated (or correlated) with Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of MONA i.e., MONA and Status Network go up and down completely randomly.
Pair Corralation between MONA and Status Network
Assuming the 90 days trading horizon MONA is expected to under-perform the Status Network. But the crypto coin apears to be less risky and, when comparing its historical volatility, MONA is 1.3 times less risky than Status Network. The crypto coin trades about -0.01 of its potential returns per unit of risk. The Status Network Token is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 4.76 in Status Network Token on January 26, 2024 and sell it today you would lose (0.60) from holding Status Network Token or give up 12.61% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
MONA vs. Status Network Token
Performance |
| Timeline |
| MONA |
| Status Network Token |
MONA and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with MONA and Status Network
The main advantage of trading using opposite MONA and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if MONA position performs unexpectedly, Status Network 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 Status Network will offset losses from the drop in Status Network's long position.The idea behind MONA and Status Network Token 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.| Status Network vs. Solana | Status Network vs. XRP | Status Network vs. Staked Ether | Status Network vs. The Open Network |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| AI Investment Finder Use AI to screen and filter profitable investment opportunities | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |