Correlation Between Jito Staked and Layer3

Can any of the company-specific risk be diversified away by investing in both Jito Staked and Layer3 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 Jito Staked and Layer3 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Jito Staked SOL and Layer3, you can compare the effects of market volatilities on Jito Staked and Layer3 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 Jito Staked with a short position of Layer3. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jito Staked and Layer3.

Diversification Opportunities for Jito Staked and Layer3

-0.52

Correlation Coefficient

Jito Staked  Layer3

Excellent diversification

The 3 months correlation between Jito and Layer3 is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding Jito Staked SOL and Layer3 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Layer3 and Jito Staked 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 Jito Staked SOL are associated (or correlated) with Layer3. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Layer3 has no effect on the direction of Jito Staked i.e., Jito Staked and Layer3 go up and down completely randomly.

Pair Corralation between Jito Staked and Layer3

Assuming the 90 days trading horizon Jito Staked SOL is expected to generate 16.45 times more return on investment than Layer3. However, Jito Staked is 16.45 times more volatile than Layer3. It trades about 0.17 of its potential returns per unit of risk. Layer3 is currently generating about -0.02 per unit of risk. If you would invest  0.00  in Jito Staked SOL on May 11, 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 Against
Strength	Very Weak
Accuracy	98.48%
Values	Daily Returns

Jito Staked SOL  vs.  Layer3

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.

Layer3

Risk-Adjusted Performance

Weakest

Over the last 90 days Layer3 has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in September 2025. The latest tumult may also be a sign of longer-term up-swing for Layer3 shareholders.

Pair Trading with Jito Staked and Layer3

The main advantage of trading using opposite Jito Staked and Layer3 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jito Staked position performs unexpectedly, Layer3 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 Layer3 will offset losses from the drop in Layer3's long position.

The idea behind Jito Staked SOL and Layer3 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.

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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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..