Correlation Between Bitcoin Cash and KuCoin Token
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash 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 Cash 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 Cash and KuCoin Token, you can compare the effects of market volatilities on Bitcoin Cash 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 Cash with a short position of KuCoin Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and KuCoin Token.
Diversification Opportunities for Bitcoin Cash and KuCoin Token
0.21 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Bitcoin and KuCoin is 0.21. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and KuCoin Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KuCoin Token and Bitcoin Cash 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 Cash 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 Cash i.e., Bitcoin Cash and KuCoin Token go up and down completely randomly.
Pair Corralation between Bitcoin Cash and KuCoin Token
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 1.31 times more return on investment than KuCoin Token. However, Bitcoin Cash is 1.31 times more volatile than KuCoin Token. It trades about 0.14 of its potential returns per unit of risk. KuCoin Token is currently generating about -0.43 per unit of risk. If you would invest 41,441 in Bitcoin Cash on January 20, 2024 and sell it today you would earn a total of 7,101 from holding Bitcoin Cash or generate 17.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bitcoin Cash vs. KuCoin Token
Performance |
| Timeline |
| Bitcoin Cash |
| KuCoin Token |
Bitcoin Cash and KuCoin Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and KuCoin Token
The main advantage of trading using opposite Bitcoin Cash and KuCoin Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash 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.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
| KuCoin Token vs. Solana | KuCoin Token vs. XRP | KuCoin Token vs. The Open Network | KuCoin Token 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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