Correlation Between KuCoin Token and Solana

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

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

Diversification Opportunities for KuCoin Token and Solana

0.37

Correlation Coefficient

KuCoin Token  Solana

Weak diversification

The 3 months correlation between KuCoin and Solana is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding KuCoin Token and Solana in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solana 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 Solana. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solana has no effect on the direction of KuCoin Token i.e., KuCoin Token and Solana go up and down completely randomly.

Pair Corralation between KuCoin Token and Solana

Assuming the 90 days trading horizon KuCoin Token is expected to generate 0.42 times more return on investment than Solana. However, KuCoin Token is 2.39 times less risky than Solana. It trades about 0.04 of its potential returns per unit of risk. Solana is currently generating about -0.08 per unit of risk. If you would invest  1,053  in KuCoin Token on December 30, 2024 and sell it today you would earn a total of  51.00  from holding KuCoin Token or generate 4.84% return on investment over 90 days.

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

KuCoin Token  vs.  Solana

KuCoin Token

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KuCoin Token are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, KuCoin Token may actually be approaching a critical reversion point that can send shares even higher in April 2025.

Solana

Risk-Adjusted Performance

Very Weak

Over the last 90 days Solana has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's essential indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Solana shareholders.

Pair Trading with KuCoin Token and Solana

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

The idea behind KuCoin Token and Solana 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.