Correlation Between KuCoin Token and ICON Project
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and ICON Project 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 ICON Project into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and ICON Project, you can compare the effects of market volatilities on KuCoin Token and ICON Project 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 ICON Project. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and ICON Project.
Diversification Opportunities for KuCoin Token and ICON Project
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KuCoin and ICON is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and ICON Project in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ICON Project 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 ICON Project. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ICON Project has no effect on the direction of KuCoin Token i.e., KuCoin Token and ICON Project go up and down completely randomly.
Pair Corralation between KuCoin Token and ICON Project
Assuming the 90 days trading horizon KuCoin Token is expected to generate 10.25 times more return on investment than ICON Project. However, KuCoin Token is 10.25 times more volatile than ICON Project. It trades about 0.06 of its potential returns per unit of risk. ICON Project is currently generating about 0.01 per unit of risk. If you would invest 1,917 in KuCoin Token on December 30, 2023 and sell it today you would lose (710.00) from holding KuCoin Token or give up 37.04% 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. ICON Project
Performance |
Timeline |
KuCoin Token |
ICON Project |
KuCoin Token and ICON Project Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KuCoin Token and ICON Project
The main advantage of trading using opposite KuCoin Token and ICON Project positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, ICON Project 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 ICON Project will offset losses from the drop in ICON Project's long position.KuCoin Token vs. Solana | KuCoin Token vs. XRP | KuCoin Token vs. Staked Ether | KuCoin Token vs. The Open Network |
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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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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