Correlation Between Monero and FTX Token

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

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

Diversification Opportunities for Monero and FTX Token

0.35

Correlation Coefficient

Monero  FTX Token

Weak diversification

The 3 months correlation between Monero and FTX is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding Monero and FTX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FTX Token and Monero 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 Monero are associated (or correlated) with FTX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FTX Token has no effect on the direction of Monero i.e., Monero and FTX Token go up and down completely randomly.

Pair Corralation between Monero and FTX Token

Assuming the 90 days trading horizon Monero is expected to generate 0.81 times more return on investment than FTX Token. However, Monero is 1.24 times less risky than FTX Token. It trades about 0.17 of its potential returns per unit of risk. FTX Token is currently generating about -0.09 per unit of risk. If you would invest  21,051  in Monero on March 19, 2025 and sell it today you would earn a total of  10,195  from holding Monero or generate 48.43% return on investment over 90 days.

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

Monero  vs.  FTX Token

Monero

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Monero are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Monero exhibited solid returns over the last few months and may actually be approaching a breakup point.

FTX Token

Risk-Adjusted Performance

Very Weak

Over the last 90 days FTX Token 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 basic indicators remain rather sound which may send shares a bit higher in July 2025. The latest tumult may also be a sign of longer-term up-swing for FTX Token shareholders.

Pair Trading with Monero and FTX Token

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

The idea behind Monero and FTX Token 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.