Correlation Between Solana and Jito

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

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

Diversification Opportunities for Solana and Jito

0.17

Correlation Coefficient

Solana  Jito

Average diversification

The 3 months correlation between Solana and Jito is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Solana and Jito in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jito and Solana 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 Solana are associated (or correlated) with Jito. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jito has no effect on the direction of Solana i.e., Solana and Jito go up and down completely randomly.

Pair Corralation between Solana and Jito

Assuming the 90 days trading horizon Solana is expected to generate 0.56 times more return on investment than Jito. However, Solana is 1.79 times less risky than Jito. It trades about 0.09 of its potential returns per unit of risk. Jito is currently generating about 0.05 per unit of risk. If you would invest  15,117  in Solana on April 22, 2025 and sell it today you would earn a total of  2,588  from holding Solana or generate 17.12% return on investment over 90 days.

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

Solana  vs.  Jito

Solana

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Solana are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady essential indicators, Solana exhibited solid returns over the last few months and may actually be approaching a breakup point.

Jito

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Jito are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Jito exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Solana and Jito

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

The idea behind Solana and Jito 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.