Correlation Between KuCoin Token and HEDG
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and HEDG 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 HEDG into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and HEDG, you can compare the effects of market volatilities on KuCoin Token and HEDG 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 HEDG. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and HEDG.
Diversification Opportunities for KuCoin Token and HEDG
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between KuCoin and HEDG is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and HEDG in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HEDG 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 HEDG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HEDG has no effect on the direction of KuCoin Token i.e., KuCoin Token and HEDG go up and down completely randomly.
Pair Corralation between KuCoin Token and HEDG
Assuming the 90 days trading horizon KuCoin Token is expected to under-perform the HEDG. But the crypto coin apears to be less risky and, when comparing its historical volatility, KuCoin Token is 5.53 times less risky than HEDG. The crypto coin trades about -0.41 of its potential returns per unit of risk. The HEDG is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 3.73 in HEDG on January 20, 2024 and sell it today you would lose (0.11) from holding HEDG or give up 2.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
KuCoin Token vs. HEDG
Performance |
| Timeline |
| KuCoin Token |
| HEDG |
KuCoin Token and HEDG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KuCoin Token and HEDG
The main advantage of trading using opposite KuCoin Token and HEDG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, HEDG 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 HEDG will offset losses from the drop in HEDG'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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Transaction History View history of all your transactions and understand their impact on performance |