Correlation Between NEO and KuCoin Token
Can any of the company-specific risk be diversified away by investing in both NEO 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 NEO and KuCoin Token into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NEO and KuCoin Token, you can compare the effects of market volatilities on NEO 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 NEO with a short position of KuCoin Token. Check out your portfolio center. Please also check ongoing floating volatility patterns of NEO and KuCoin Token.
Diversification Opportunities for NEO and KuCoin Token
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between NEO and KuCoin is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding NEO and KuCoin Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KuCoin Token and NEO 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 NEO 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 NEO i.e., NEO and KuCoin Token go up and down completely randomly.
Pair Corralation between NEO and KuCoin Token
Assuming the 90 days trading horizon NEO is expected to generate 1.71 times more return on investment than KuCoin Token. However, NEO is 1.71 times more volatile than KuCoin Token. It trades about 0.11 of its potential returns per unit of risk. KuCoin Token is currently generating about -0.09 per unit of risk. If you would invest 1,571 in NEO on January 26, 2024 and sell it today you would earn a total of 235.00 from holding NEO or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NEO vs. KuCoin Token
Performance |
| Timeline |
| NEO |
| KuCoin Token |
NEO and KuCoin Token Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NEO and KuCoin Token
The main advantage of trading using opposite NEO and KuCoin Token positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NEO 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 NEO 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. Staked Ether | KuCoin Token vs. The Open Network |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |