Correlation Between KuCoin Token and Bitcoin SV

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Can any of the company-specific risk be diversified away by investing in both KuCoin Token and Bitcoin SV 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 Bitcoin SV into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and Bitcoin SV, you can compare the effects of market volatilities on KuCoin Token and Bitcoin SV 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 Bitcoin SV. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and Bitcoin SV.

Diversification Opportunities for KuCoin Token and Bitcoin SV

0.66
  Correlation Coefficient

Poor diversification

The 3 months correlation between KuCoin and Bitcoin is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and Bitcoin SV in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bitcoin SV 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 Bitcoin SV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitcoin SV has no effect on the direction of KuCoin Token i.e., KuCoin Token and Bitcoin SV go up and down completely randomly.

Pair Corralation between KuCoin Token and Bitcoin SV

Assuming the 90 days trading horizon KuCoin Token is expected to generate 2.45 times less return on investment than Bitcoin SV. But when comparing it to its historical volatility, KuCoin Token is 1.49 times less risky than Bitcoin SV. It trades about 0.05 of its potential returns per unit of risk. Bitcoin SV is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  3,615  in Bitcoin SV on December 29, 2023 and sell it today you would earn a total of  5,586  from holding Bitcoin SV or generate 154.52% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

KuCoin Token  vs.  Bitcoin SV

 Performance 
       Timeline  
KuCoin Token 

Risk-Adjusted Performance

5 of 100

 
Low
 
High
Modest
Compared to the overall equity markets, risk-adjusted returns on investments in KuCoin Token are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, KuCoin Token exhibited solid returns over the last few months and may actually be approaching a breakup point.
Bitcoin SV 

Risk-Adjusted Performance

2 of 100

 
Low
 
High
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bitcoin SV may actually be approaching a critical reversion point that can send shares even higher in April 2024.

KuCoin Token and Bitcoin SV Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with KuCoin Token and Bitcoin SV

The main advantage of trading using opposite KuCoin Token and Bitcoin SV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, Bitcoin SV 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 Bitcoin SV will offset losses from the drop in Bitcoin SV's long position.
The idea behind KuCoin Token and Bitcoin SV 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.

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