Correlation Between Bitcoin Cash and Kyber Network
Can any of the company-specific risk be diversified away by investing in both Bitcoin Cash and Kyber Network 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 Kyber Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bitcoin Cash and Kyber Network Crystal, you can compare the effects of market volatilities on Bitcoin Cash and Kyber Network 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 Kyber Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Cash and Kyber Network.
Diversification Opportunities for Bitcoin Cash and Kyber Network
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Bitcoin and Kyber is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Cash and Kyber Network Crystal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kyber Network Crystal 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 Kyber Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kyber Network Crystal has no effect on the direction of Bitcoin Cash i.e., Bitcoin Cash and Kyber Network go up and down completely randomly.
Pair Corralation between Bitcoin Cash and Kyber Network
Assuming the 90 days trading horizon Bitcoin Cash is expected to generate 1.08 times more return on investment than Kyber Network. However, Bitcoin Cash is 1.08 times more volatile than Kyber Network Crystal. It trades about 0.07 of its potential returns per unit of risk. Kyber Network Crystal is currently generating about -0.24 per unit of risk. If you would invest 47,908 in Bitcoin Cash on January 25, 2024 and sell it today you would earn a total of 2,580 from holding Bitcoin Cash or generate 5.39% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Bitcoin Cash vs. Kyber Network Crystal
Performance |
| Timeline |
| Bitcoin Cash |
| Kyber Network Crystal |
Bitcoin Cash and Kyber Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bitcoin Cash and Kyber Network
The main advantage of trading using opposite Bitcoin Cash and Kyber Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin Cash position performs unexpectedly, Kyber Network 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 Kyber Network will offset losses from the drop in Kyber Network's long position.| Bitcoin Cash vs. Bitcoin | Bitcoin Cash vs. Dogecoin | Bitcoin Cash vs. Litecoin | Bitcoin Cash vs. Ethereum Classic |
| Kyber Network vs. Solana | Kyber Network vs. XRP | Kyber Network vs. Staked Ether | Kyber Network 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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