Correlation Between Sui and KIN

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

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

Diversification Opportunities for Sui and KIN

0.92

Correlation Coefficient

Sui  KIN

Almost no diversification

The 3 months correlation between Sui and KIN is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Sui and KIN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KIN 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 KIN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KIN has no effect on the direction of Sui i.e., Sui and KIN go up and down completely randomly.

Pair Corralation between Sui and KIN

Assuming the 90 days trading horizon Sui is expected to generate 0.57 times more return on investment than KIN. However, Sui is 1.75 times less risky than KIN. It trades about -0.07 of its potential returns per unit of risk. KIN is currently generating about -0.14 per unit of risk. If you would invest  412.00  in Sui on December 28, 2024 and sell it today you would lose (132.00) from holding Sui or give up 32.04% of portfolio value over 90 days.

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

Sui  vs.  KIN

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.

KIN

Risk-Adjusted Performance

Very Weak

Over the last 90 days KIN 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 basic 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 KIN shareholders.

Pair Trading with Sui and KIN

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

The idea behind Sui and KIN 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..