Correlation Between KuCoin Token and MX Token
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and MX 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 KuCoin Token and MX Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and MX Token, you can compare the effects of market volatilities on KuCoin Token and MX 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 KuCoin Token with a short position of MX Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and MX Token.
Diversification Opportunities for KuCoin Token and MX Token
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between KuCoin and MX Token is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and MX Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MX Token and KuCoin Token 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 KuCoin Token are associated (or correlated) with MX Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MX Token has no effect on the direction of KuCoin Token i.e., KuCoin Token and MX Token go up and down completely randomly.
Pair Corralation between KuCoin Token and MX Token
Assuming the 90 days trading horizon KuCoin Token is expected to generate 3.62 times less return on investment than MX Token. In addition to that, KuCoin Token is 1.89 times more volatile than MX Token. It trades about 0.07 of its total potential returns per unit of risk. MX Token is currently generating about 0.49 per unit of volatility. If you would invest 293.00 in MX Token on December 29, 2023 and sell it today you would earn a total of 140.00 from holding MX Token or generate 47.78% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
KuCoin Token vs. MX Token
Performance |
Timeline |
KuCoin Token |
MX Token |
KuCoin Token and MX Token Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KuCoin Token and MX Token
The main advantage of trading using opposite KuCoin Token and MX Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, MX 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 MX Token will offset losses from the drop in MX Token's long position.The idea behind KuCoin Token and MX 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.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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |