Correlation Between LAMB and KuCoin Token
Can any of the company-specific risk be diversified away by investing in both LAMB and KuCoin Token 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 LAMB and KuCoin Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between LAMB and KuCoin Token, you can compare the effects of market volatilities on LAMB and KuCoin Token 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 LAMB with a short position of KuCoin Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of LAMB and KuCoin Token.
Diversification Opportunities for LAMB and KuCoin Token
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between LAMB and KuCoin is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding LAMB and KuCoin Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KuCoin Token and LAMB 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 LAMB are associated (or correlated) with KuCoin Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KuCoin Token has no effect on the direction of LAMB i.e., LAMB and KuCoin Token go up and down completely randomly.
Pair Corralation between LAMB and KuCoin Token
Assuming the 90 days trading horizon LAMB is expected to under-perform the KuCoin Token. In addition to that, LAMB is 1.49 times more volatile than KuCoin Token. It trades about -0.27 of its total potential returns per unit of risk. KuCoin Token is currently generating about -0.36 per unit of volatility. If you would invest 1,403 in KuCoin Token on January 21, 2024 and sell it today you would lose (516.00) from holding KuCoin Token or give up 36.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
LAMB vs. KuCoin Token
Performance |
| Timeline |
| LAMB |
| KuCoin Token |
LAMB and KuCoin Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with LAMB and KuCoin Token
The main advantage of trading using opposite LAMB and KuCoin Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if LAMB position performs unexpectedly, KuCoin Token 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 KuCoin Token will offset losses from the drop in KuCoin Token's long position.The idea behind LAMB and KuCoin Token pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| 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 Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |