Correlation Between XRP and Jito Staked
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By analyzing existing cross correlation between XRP and Jito Staked SOL, you can compare the effects of market volatilities on XRP 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 XRP with a short position of Jito Staked. Check out your portfolio center. Please also check ongoing floating volatility patterns of XRP and Jito Staked.
Diversification Opportunities for XRP and Jito Staked
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XRP and Jito is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding XRP 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 XRP 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 XRP 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 XRP i.e., XRP and Jito Staked go up and down completely randomly.
Pair Corralation between XRP and Jito Staked
Assuming the 90 days trading horizon XRP is expected to generate 59.65 times less return on investment than Jito Staked. But when comparing it to its historical volatility, XRP is 44.47 times less risky than Jito Staked. It trades about 0.12 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 6, 2025 and sell it today you would earn a total of 19,396 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 |
XRP vs. Jito Staked SOL
Performance |
Timeline |
XRP |
Jito Staked SOL |
XRP and Jito Staked Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XRP and Jito Staked
The main advantage of trading using opposite XRP and Jito Staked positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XRP 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 XRP 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.Jito Staked vs. Jito | Jito Staked vs. Concordium | Jito Staked vs. Staked Ether | Jito Staked vs. EigenLayer |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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