Correlation Between Kaspa and SUN

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

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

Diversification Opportunities for Kaspa and SUN

0.68

Correlation Coefficient

Kaspa  SUN

Poor diversification

The 3 months correlation between Kaspa and SUN is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Kaspa and SUN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SUN 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 SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SUN has no effect on the direction of Kaspa i.e., Kaspa and SUN go up and down completely randomly.

Pair Corralation between Kaspa and SUN

Assuming the 90 days trading horizon Kaspa is expected to generate 10.67 times less return on investment than SUN. In addition to that, Kaspa is 2.09 times more volatile than SUN. It trades about 0.0 of its total potential returns per unit of risk. SUN is currently generating about 0.07 per unit of volatility. If you would invest  1.72  in SUN on April 20, 2025 and sell it today you would earn a total of  0.16  from holding SUN or generate 9.3% return on investment over 90 days.

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

Kaspa  vs.  SUN

Kaspa

Risk-Adjusted Performance

Very Weak

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.

SUN

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in SUN are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, SUN may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Kaspa and SUN

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

The idea behind Kaspa and SUN 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.

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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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.