Correlation Between KuCoin Token and ZB
Can any of the company-specific risk be diversified away by investing in both KuCoin Token and ZB 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 ZB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between KuCoin Token and ZB, you can compare the effects of market volatilities on KuCoin Token and ZB 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 ZB. Check out your portfolio center. Please also check ongoing floating volatility patterns of KuCoin Token and ZB.
Diversification Opportunities for KuCoin Token and ZB
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between KuCoin and ZB is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and ZB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZB 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 ZB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZB has no effect on the direction of KuCoin Token i.e., KuCoin Token and ZB go up and down completely randomly.
Pair Corralation between KuCoin Token and ZB
Assuming the 90 days trading horizon KuCoin Token is expected to generate 4.32 times more return on investment than ZB. However, KuCoin Token is 4.32 times more volatile than ZB. It trades about 0.05 of its potential returns per unit of risk. ZB is currently generating about 0.07 per unit of risk. If you would invest 1,672 in KuCoin Token on January 26, 2024 and sell it today you would lose (673.00) from holding KuCoin Token or give up 40.25% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 70.76% |
Values | Daily Returns |
KuCoin Token vs. ZB
Performance |
Timeline |
KuCoin Token |
ZB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
KuCoin Token and ZB Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with KuCoin Token and ZB
The main advantage of trading using opposite KuCoin Token and ZB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if KuCoin Token position performs unexpectedly, ZB 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 ZB will offset losses from the drop in ZB's long position.KuCoin Token vs. Solana | KuCoin Token vs. XRP | KuCoin Token vs. Staked Ether | KuCoin Token vs. The Open Network |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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