Correlation Between KuCoin Token and BRC
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and BRC 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 BRC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and BRC, you can compare the effects of market volatilities on KuCoin Token and BRC 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 BRC. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and BRC.
Diversification Opportunities for KuCoin Token and BRC
-0.77 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KuCoin and BRC is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and BRC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BRC 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 BRC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BRC has no effect on the direction of KuCoin Token i.e., KuCoin Token and BRC go up and down completely randomly.
Pair Corralation between KuCoin Token and BRC
Assuming the 90 days trading horizon KuCoin Token is expected to generate 14.75 times more return on investment than BRC. However, KuCoin Token is 14.75 times more volatile than BRC. It trades about 0.06 of its potential returns per unit of risk. BRC is currently generating about 0.0 per unit of risk. If you would invest 1,392 in KuCoin Token on December 30, 2023 and sell it today you would lose (185.00) from holding KuCoin Token or give up 13.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Weak |
Accuracy | 73.43% |
Values | Daily Returns |
KuCoin Token vs. BRC
Performance |
Timeline |
KuCoin Token |
BRC |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
KuCoin Token and BRC Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KuCoin Token and BRC
The main advantage of trading using opposite KuCoin Token and BRC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, BRC 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 BRC will offset losses from the drop in BRC's long position.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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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