Correlation Between Kaspa and LEO Token

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

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

Diversification Opportunities for Kaspa and LEO Token

-0.5

Correlation Coefficient

Kaspa  LEO Token

Very good diversification

The 3 months correlation between Kaspa and LEO is -0.5. Overlapping area represents the amount of risk that can be diversified away by holding Kaspa and LEO Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LEO Token and Kaspa 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 Kaspa are associated (or correlated) with LEO Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LEO Token has no effect on the direction of Kaspa i.e., Kaspa and LEO Token go up and down completely randomly.

Pair Corralation between Kaspa and LEO Token

Assuming the 90 days trading horizon Kaspa is expected to under-perform the LEO Token. In addition to that, Kaspa is 9.88 times more volatile than LEO Token. It trades about -0.02 of its total potential returns per unit of risk. LEO Token is currently generating about 0.1 per unit of volatility. If you would invest  962.00  in LEO Token on July 9, 2025 and sell it today you would earn a total of  7.00  from holding LEO Token or generate 0.73% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Kaspa  vs.  LEO Token

Kaspa

Risk-Adjusted Performance

Weakest

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

LEO Token

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in LEO Token are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, LEO Token may actually be approaching a critical reversion point that can send shares even higher in November 2025.

Pair Trading with Kaspa and LEO Token

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

The idea behind Kaspa and LEO 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.

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.