Correlation Between MONA and MimbleWimbleCoin

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

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

Diversification Opportunities for MONA and MimbleWimbleCoin

-0.7

Correlation Coefficient

MONA  MimbleWimbleCoin

Excellent diversification

The 3 months correlation between MONA and MimbleWimbleCoin is -0.7. Overlapping area represents the amount of risk that can be diversified away by holding MONA and MimbleWimbleCoin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MimbleWimbleCoin and MONA 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 MONA are associated (or correlated) with MimbleWimbleCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MimbleWimbleCoin has no effect on the direction of MONA i.e., MONA and MimbleWimbleCoin go up and down completely randomly.

Pair Corralation between MONA and MimbleWimbleCoin

Assuming the 90 days trading horizon MONA is expected to under-perform the MimbleWimbleCoin. In addition to that, MONA is 2.1 times more volatile than MimbleWimbleCoin. It trades about -0.04 of its total potential returns per unit of risk. MimbleWimbleCoin is currently generating about 0.26 per unit of volatility. If you would invest  2,618  in MimbleWimbleCoin on April 20, 2025 and sell it today you would earn a total of  1,248  from holding MimbleWimbleCoin or generate 47.67% return on investment over 90 days.

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

MONA  vs.  MimbleWimbleCoin

MONA

Risk-Adjusted Performance

Very Weak

Over the last 90 days MONA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for MONA shareholders.

MimbleWimbleCoin

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MimbleWimbleCoin are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, MimbleWimbleCoin exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MONA and MimbleWimbleCoin

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

The idea behind MONA and MimbleWimbleCoin 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..