Correlation Between KuCoin Token and CENNZ

Can any of the company-specific risk be diversified away by investing in both KuCoin Token and CENNZ 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 CENNZ into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between KuCoin Token and CENNZ, you can compare the effects of market volatilities on KuCoin Token and CENNZ 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 CENNZ. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and CENNZ.

Diversification Opportunities for KuCoin Token and CENNZ

0.1

Correlation Coefficient

KuCoin Token  CENNZ

Average diversification

The 3 months correlation between KuCoin and CENNZ is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and CENNZ in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENNZ 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 CENNZ. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENNZ has no effect on the direction of KuCoin Token i.e., KuCoin Token and CENNZ go up and down completely randomly.

Pair Corralation between KuCoin Token and CENNZ

Assuming the 90 days trading horizon KuCoin Token is expected to under-perform the CENNZ. But the crypto coin apears to be less risky and, when comparing its historical volatility, KuCoin Token is 15.59 times less risky than CENNZ. The crypto coin trades about -0.06 of its potential returns per unit of risk. The CENNZ is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  3.05  in CENNZ on February 1, 2024 and sell it today you would earn a total of  4.51  from holding CENNZ or generate 147.87% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

KuCoin Token  vs.  CENNZ

KuCoin Token

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KuCoin Token has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, KuCoin Token is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

CENNZ

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in CENNZ are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, CENNZ exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with KuCoin Token and CENNZ

The main advantage of trading using opposite KuCoin Token and CENNZ positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, CENNZ 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 CENNZ will offset losses from the drop in CENNZ's long position.

The idea behind KuCoin Token and CENNZ 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.

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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.