Correlation Between KuCoin Token and Enjin Coin
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and Enjin Coin 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 Enjin Coin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and Enjin Coin, you can compare the effects of market volatilities on KuCoin Token and Enjin Coin 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 Enjin Coin. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and Enjin Coin.
Diversification Opportunities for KuCoin Token and Enjin Coin
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KuCoin and Enjin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and Enjin Coin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enjin Coin 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 Enjin Coin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enjin Coin has no effect on the direction of KuCoin Token i.e., KuCoin Token and Enjin Coin go up and down completely randomly.
Pair Corralation between KuCoin Token and Enjin Coin
Assuming the 90 days trading horizon KuCoin Token is expected to under-perform the Enjin Coin. But the crypto coin apears to be less risky and, when comparing its historical volatility, KuCoin Token is 1.13 times less risky than Enjin Coin. The crypto coin trades about -0.41 of its potential returns per unit of risk. The Enjin Coin is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 51.00 in Enjin Coin on January 20, 2024 and sell it today you would lose (18.00) from holding Enjin Coin or give up 35.29% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KuCoin Token vs. Enjin Coin
Performance |
| Timeline |
| KuCoin Token |
| Enjin Coin |
KuCoin Token and Enjin Coin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KuCoin Token and Enjin Coin
The main advantage of trading using opposite KuCoin Token and Enjin Coin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, Enjin Coin 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 Enjin Coin will offset losses from the drop in Enjin Coin's long position.| 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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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