Correlation Between EigenLayer and MANTRA

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

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

Diversification Opportunities for EigenLayer and MANTRA

-0.84

Correlation Coefficient

EigenLayer  MANTRA

Pay attention - limited upside

The 3 months correlation between EigenLayer and MANTRA is -0.84. Overlapping area represents the amount of risk that can be diversified away by holding EigenLayer and MANTRA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MANTRA and EigenLayer 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 EigenLayer 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 EigenLayer i.e., EigenLayer and MANTRA go up and down completely randomly.

Pair Corralation between EigenLayer and MANTRA

Assuming the 90 days trading horizon EigenLayer is expected to under-perform the MANTRA. In addition to that, EigenLayer is 1.29 times more volatile than MANTRA. It trades about -0.21 of its total potential returns per unit of risk. MANTRA is currently generating about 0.16 per unit of volatility. If you would invest  381.00  in MANTRA on December 23, 2024 and sell it today you would earn a total of  241.00  from holding MANTRA or generate 63.25% return on investment over 90 days.

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

EigenLayer  vs.  MANTRA

EigenLayer

Risk-Adjusted Performance

Very Weak

Over the last 90 days EigenLayer 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 April 2025. The latest tumult may also be a sign of longer-term up-swing for EigenLayer shareholders.

MANTRA

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in MANTRA are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, MANTRA exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with EigenLayer and MANTRA

The main advantage of trading using opposite EigenLayer and MANTRA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if EigenLayer 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 EigenLayer 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.

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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.