Correlation Between Hyperliquid and Jito Staked

Can any of the company-specific risk be diversified away by investing in both Hyperliquid and Jito Staked 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 Hyperliquid and Jito Staked into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Hyperliquid and Jito Staked SOL, you can compare the effects of market volatilities on Hyperliquid and Jito Staked 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 Hyperliquid with a short position of Jito Staked. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hyperliquid and Jito Staked.

Diversification Opportunities for Hyperliquid and Jito Staked

0.61

Correlation Coefficient

Hyperliquid  Jito Staked

Poor diversification

The 3 months correlation between Hyperliquid and Jito is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Hyperliquid and Jito Staked SOL in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jito Staked SOL and Hyperliquid 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 Hyperliquid are associated (or correlated) with Jito Staked. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jito Staked SOL has no effect on the direction of Hyperliquid i.e., Hyperliquid and Jito Staked go up and down completely randomly.

Pair Corralation between Hyperliquid and Jito Staked

Assuming the 90 days trading horizon Hyperliquid is expected to generate 2.04 times less return on investment than Jito Staked. But when comparing it to its historical volatility, Hyperliquid is 1.4 times less risky than Jito Staked. It trades about 0.11 of its potential returns per unit of risk. Jito Staked SOL is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest  0.00  in Jito Staked SOL on May 12, 2025 and sell it today you would earn a total of  22,028  from holding Jito Staked SOL or generate 9.223372036854776E16% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Hyperliquid  vs.  Jito Staked SOL

Hyperliquid

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Hyperliquid are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, Hyperliquid exhibited solid returns over the last few months and may actually be approaching a breakup point.

Jito Staked SOL

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Jito Staked SOL are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite quite unsteady basic indicators, Jito Staked disclosed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Hyperliquid and Jito Staked

The main advantage of trading using opposite Hyperliquid and Jito Staked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hyperliquid position performs unexpectedly, Jito Staked 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 Jito Staked will offset losses from the drop in Jito Staked's long position.

The idea behind Hyperliquid and Jito Staked SOL 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.

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.