Correlation Between Mantle and LEO
Can any of the company-specific risk be diversified away by investing in both Mantle and LEO 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 Mantle and LEO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mantle and LEO, you can compare the effects of market volatilities on Mantle and LEO 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 Mantle with a short position of LEO. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mantle and LEO.
Diversification Opportunities for Mantle and LEO
Poor diversification
The 3 months correlation between Mantle and LEO is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Mantle and LEO in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEO and Mantle 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 Mantle are associated (or correlated) with LEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEO has no effect on the direction of Mantle i.e., Mantle and LEO go up and down completely randomly.
Pair Corralation between Mantle and LEO
Assuming the 90 days trading horizon Mantle is expected to generate 11.73 times more return on investment than LEO. However, Mantle is 11.73 times more volatile than LEO. It trades about 0.16 of its potential returns per unit of risk. LEO is currently generating about 0.09 per unit of risk. If you would invest 83.00 in Mantle on July 21, 2025 and sell it today you would earn a total of 83.00 from holding Mantle or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Mantle vs. LEO
Performance |
| Timeline |
| Mantle |
| LEO |
Mantle and LEO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mantle and LEO
The main advantage of trading using opposite Mantle and LEO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mantle position performs unexpectedly, LEO 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 LEO will offset losses from the drop in LEO's long position.| Mantle vs. Mantle Restaked Ether | Mantle vs. Mantle Staked Ether | Mantle vs. Concordium | Mantle vs. Staked Ether |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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