Correlation Between Chainlink and MANTRA

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

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

Diversification Opportunities for Chainlink and MANTRA

0.27

Correlation Coefficient

Chainlink  MANTRA

Modest diversification

The 3 months correlation between Chainlink and MANTRA is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Chainlink and MANTRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MANTRA and Chainlink 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 Chainlink are associated (or correlated) with MANTRA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MANTRA has no effect on the direction of Chainlink i.e., Chainlink and MANTRA go up and down completely randomly.

Pair Corralation between Chainlink and MANTRA

Assuming the 90 days trading horizon Chainlink is expected to generate 0.68 times more return on investment than MANTRA. However, Chainlink is 1.47 times less risky than MANTRA. It trades about 0.07 of its potential returns per unit of risk. MANTRA is currently generating about -0.06 per unit of risk. If you would invest  1,382  in Chainlink on May 6, 2025 and sell it today you would earn a total of  193.00  from holding Chainlink or generate 13.97% return on investment over 90 days.

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

Chainlink  vs.  MANTRA

Chainlink

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Chainlink are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental indicators, Chainlink exhibited solid returns over the last few months and may actually be approaching a breakup point.

MANTRA

Risk-Adjusted Performance

Very Weak

Over the last 90 days MANTRA 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 MANTRA shareholders.

Pair Trading with Chainlink and MANTRA

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

The idea behind Chainlink and MANTRA 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.