Correlation Between MNW and OpenLedger

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

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

Diversification Opportunities for MNW and OpenLedger

0.09

Correlation Coefficient

MNW  OpenLedger

Significant diversification

The 3 months correlation between MNW and OpenLedger is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding MNW and OpenLedger in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OpenLedger and MNW 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 MNW are associated (or correlated) with OpenLedger. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OpenLedger has no effect on the direction of MNW i.e., MNW and OpenLedger go up and down completely randomly.

Pair Corralation between MNW and OpenLedger

Assuming the 90 days trading horizon MNW is expected to under-perform the OpenLedger. But the crypto coin apears to be less risky and, when comparing its historical volatility, MNW is 59.97 times less risky than OpenLedger. The crypto coin trades about -0.03 of its potential returns per unit of risk. The OpenLedger is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  0.39  in OpenLedger on July 29, 2025 and sell it today you would earn a total of  38.61  from holding OpenLedger or generate 9823.66% return on investment over 90 days.

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

MNW  vs.  OpenLedger

MNW

Risk-Adjusted Performance

Weakest

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

OpenLedger

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in OpenLedger are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, OpenLedger exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MNW and OpenLedger

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

The idea behind MNW and OpenLedger 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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.