Correlation Between Phala Network and Immutable

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

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

Diversification Opportunities for Phala Network and Immutable

0.1

Correlation Coefficient

Phala Network  Immutable

Average diversification

The 3 months correlation between Phala and Immutable is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Phala Network and Immutable X in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Immutable X and Phala Network 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 Phala Network are associated (or correlated) with Immutable. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Immutable X has no effect on the direction of Phala Network i.e., Phala Network and Immutable go up and down completely randomly.

Pair Corralation between Phala Network and Immutable

Assuming the 90 days trading horizon Phala Network is expected to under-perform the Immutable. In addition to that, Phala Network is 1.16 times more volatile than Immutable X. It trades about -0.06 of its total potential returns per unit of risk. Immutable X is currently generating about 0.0 per unit of volatility. If you would invest  64.00  in Immutable X on May 26, 2025 and sell it today you would lose (8.00) from holding Immutable X or give up 12.5% of portfolio value over 90 days.

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

Phala Network  vs.  Immutable X

Phala Network

Risk-Adjusted Performance

Weakest

Over the last 90 days Phala Network 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 basic 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 Phala Network shareholders.

Immutable X

Risk-Adjusted Performance

Weakest

Over the last 90 days Immutable X has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, Immutable is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Phala Network and Immutable

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

The idea behind Phala Network and Immutable X 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.