Correlation Between Bitget Token and Kaspa

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

By analyzing existing cross correlation between Bitget token and Kaspa, you can compare the effects of market volatilities on Bitget Token and Kaspa 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 Bitget Token with a short position of Kaspa. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitget Token and Kaspa.

Diversification Opportunities for Bitget Token and Kaspa

0.7

Correlation Coefficient

Bitget Token  Kaspa

Poor diversification

The 3 months correlation between Bitget and Kaspa is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Bitget token and Kaspa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kaspa and Bitget 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 Bitget token are associated (or correlated) with Kaspa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kaspa has no effect on the direction of Bitget Token i.e., Bitget Token and Kaspa go up and down completely randomly.

Pair Corralation between Bitget Token and Kaspa

Assuming the 90 days trading horizon Bitget Token is expected to generate 1.65 times less return on investment than Kaspa. But when comparing it to its historical volatility, Bitget token is 1.68 times less risky than Kaspa. It trades about 0.02 of its potential returns per unit of risk. Kaspa is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  9.04  in Kaspa on May 3, 2025 and sell it today you would lose (0.17) from holding Kaspa or give up 1.88% of portfolio value over 90 days.

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

Bitget token  vs.  Kaspa

Bitget token

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitget token are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound fundamental drivers, Bitget Token is not utilizing all of its potentials. The latest stock price tumult, may contribute to shorter-term losses for the shareholders.

Kaspa

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Kaspa are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Kaspa may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with Bitget Token and Kaspa

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

The idea behind Bitget token and Kaspa 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.