Correlation Between Jito Staked and Morpho

Can any of the company-specific risk be diversified away by investing in both Jito Staked and Morpho 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 Morpho 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 Morpho, you can compare the effects of market volatilities on Jito Staked and Morpho 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 Morpho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jito Staked and Morpho.

Diversification Opportunities for Jito Staked and Morpho

0.42

Correlation Coefficient

Jito Staked  Morpho

Very weak diversification

The 3 months correlation between Jito and Morpho is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Jito Staked SOL and Morpho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Morpho 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 Morpho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Morpho has no effect on the direction of Jito Staked i.e., Jito Staked and Morpho go up and down completely randomly.

Pair Corralation between Jito Staked and Morpho

Assuming the 90 days trading horizon Jito Staked SOL is expected to generate 25.05 times more return on investment than Morpho. However, Jito Staked is 25.05 times more volatile than Morpho. It trades about 0.17 of its potential returns per unit of risk. Morpho is currently generating about 0.1 per unit of risk. If you would invest  0.00  in Jito Staked SOL on May 2, 2025 and sell it today you would earn a total of  22,057  from holding Jito Staked SOL or generate 9.223372036854776E16% return on investment over 90 days.

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

Jito Staked SOL  vs.  Morpho

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.

Morpho

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Morpho are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite somewhat unsteady basic indicators, Morpho sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Jito Staked and Morpho

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

The idea behind Jito Staked SOL and Morpho 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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.