Correlation Between KuCoin Token and Cronos
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and Cronos 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 Cronos into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and Cronos, you can compare the effects of market volatilities on KuCoin Token and Cronos 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 Cronos. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and Cronos.
Diversification Opportunities for KuCoin Token and Cronos
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between KuCoin and Cronos is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and Cronos in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cronos 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 Cronos. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cronos has no effect on the direction of KuCoin Token i.e., KuCoin Token and Cronos go up and down completely randomly.
Pair Corralation between KuCoin Token and Cronos
Assuming the 90 days trading horizon KuCoin Token is expected to generate 1.09 times more return on investment than Cronos. However, KuCoin Token is 1.09 times more volatile than Cronos. It trades about -0.08 of its potential returns per unit of risk. Cronos is currently generating about -0.2 per unit of risk. If you would invest 1,132 in KuCoin Token on January 26, 2024 and sell it today you would lose (133.00) from holding KuCoin Token or give up 11.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KuCoin Token vs. Cronos
Performance |
| Timeline |
| KuCoin Token |
| Cronos |
KuCoin Token and Cronos Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KuCoin Token and Cronos
The main advantage of trading using opposite KuCoin Token and Cronos positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, Cronos 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 Cronos will offset losses from the drop in Cronos' 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Stocks Directory Find actively traded stocks across global markets | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |