Correlation Between Bitcoin SV and KuCoin Token
Can any of the company-specific risk be diversified away by investing in both Bitcoin SV and KuCoin 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 Bitcoin SV and KuCoin Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin SV and KuCoin Token, you can compare the effects of market volatilities on Bitcoin SV and KuCoin 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 Bitcoin SV with a short position of KuCoin Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin SV and KuCoin Token.
Diversification Opportunities for Bitcoin SV and KuCoin Token
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Bitcoin and KuCoin is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin SV and KuCoin Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KuCoin Token and Bitcoin SV 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 Bitcoin SV are associated (or correlated) with KuCoin Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KuCoin Token has no effect on the direction of Bitcoin SV i.e., Bitcoin SV and KuCoin Token go up and down completely randomly.
Pair Corralation between Bitcoin SV and KuCoin Token
Assuming the 90 days trading horizon Bitcoin SV is expected to generate 1.37 times more return on investment than KuCoin Token. However, Bitcoin SV is 1.37 times more volatile than KuCoin Token. It trades about 0.0 of its potential returns per unit of risk. KuCoin Token is currently generating about -0.01 per unit of risk. If you would invest 8,173 in Bitcoin SV on January 26, 2024 and sell it today you would lose (1,045) from holding Bitcoin SV or give up 12.79% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin SV vs. KuCoin Token
Performance |
| Timeline |
| Bitcoin SV |
| KuCoin Token |
Bitcoin SV and KuCoin Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin SV and KuCoin Token
The main advantage of trading using opposite Bitcoin SV and KuCoin Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin SV position performs unexpectedly, KuCoin 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 KuCoin Token will offset losses from the drop in KuCoin Token's long position.The idea behind Bitcoin SV and KuCoin 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.| KuCoin Token vs. Solana | KuCoin Token vs. XRP | KuCoin Token vs. Staked Ether | KuCoin Token vs. The Open Network |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |