Correlation Between KuCoin Token and Nano
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and Nano 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 Nano into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and Nano, you can compare the effects of market volatilities on KuCoin Token and Nano 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 Nano. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and Nano.
Diversification Opportunities for KuCoin Token and Nano
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between KuCoin and Nano is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and Nano in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nano 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 Nano. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nano has no effect on the direction of KuCoin Token i.e., KuCoin Token and Nano go up and down completely randomly.
Pair Corralation between KuCoin Token and Nano
Assuming the 90 days trading horizon KuCoin Token is expected to generate 1.06 times less return on investment than Nano. In addition to that, KuCoin Token is 1.02 times more volatile than Nano. It trades about 0.07 of its total potential returns per unit of risk. Nano is currently generating about 0.08 per unit of volatility. If you would invest 72.00 in Nano on January 24, 2024 and sell it today you would earn a total of 47.00 from holding Nano or generate 65.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
KuCoin Token vs. Nano
Performance |
| Timeline |
| KuCoin Token |
| Nano |
KuCoin Token and Nano Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with KuCoin Token and Nano
The main advantage of trading using opposite KuCoin Token and Nano positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, Nano 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 Nano will offset losses from the drop in Nano'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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |