Correlation Between Sui and KuCoin Token

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

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

Diversification Opportunities for Sui and KuCoin Token

-0.09

Correlation Coefficient

Sui  KuCoin Token

Good diversification

The 3 months correlation between Sui and KuCoin is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Sui and KuCoin Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KuCoin Token and Sui 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 Sui are associated (or correlated) with KuCoin Token. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KuCoin Token has no effect on the direction of Sui i.e., Sui and KuCoin Token go up and down completely randomly.

Pair Corralation between Sui and KuCoin Token

Assuming the 90 days trading horizon Sui is expected to under-perform the KuCoin Token. In addition to that, Sui is 2.57 times more volatile than KuCoin Token. It trades about -0.09 of its total potential returns per unit of risk. KuCoin Token is currently generating about 0.05 per unit of volatility. If you would invest  1,053  in KuCoin Token on December 29, 2024 and sell it today you would earn a total of  68.00  from holding KuCoin Token or generate 6.46% return on investment over 90 days.

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

Sui  vs.  KuCoin Token

Sui

Risk-Adjusted Performance

Very Weak

Over the last 90 days Sui 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 forward 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 Sui shareholders.

KuCoin Token

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in KuCoin Token are ranked lower than 4 (%) 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.

Pair Trading with Sui and KuCoin Token

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

The idea behind Sui and KuCoin 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.

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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 Commodity Directory module to find actively traded commodities issued by global exchanges.