Correlation Between KuCoin Token and THX
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and THX 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 THX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and THX, you can compare the effects of market volatilities on KuCoin Token and THX 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 THX. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and THX.
Diversification Opportunities for KuCoin Token and THX
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between KuCoin and THX is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and THX in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THX 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 THX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THX has no effect on the direction of KuCoin Token i.e., KuCoin Token and THX go up and down completely randomly.
Pair Corralation between KuCoin Token and THX
Assuming the 90 days trading horizon KuCoin Token is expected to generate 12.08 times more return on investment than THX. However, KuCoin Token is 12.08 times more volatile than THX. It trades about 0.06 of its potential returns per unit of risk. THX is currently generating about -0.05 per unit of risk. If you would invest 1,489 in KuCoin Token on February 4, 2024 and sell it today you would lose (476.00) from holding KuCoin Token or give up 31.97% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 69.46% |
Values | Daily Returns |
KuCoin Token vs. THX
Performance |
Timeline |
KuCoin Token |
THX |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KuCoin Token and THX Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KuCoin Token and THX
The main advantage of trading using opposite KuCoin Token and THX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, THX 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 THX will offset losses from the drop in THX'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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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