Correlation Between XRP and Kngt Clb

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

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

Diversification Opportunities for XRP and Kngt Clb

0.85

Correlation Coefficient

XRP  Kngt Clb

Very poor diversification

The 3 months correlation between XRP and Kngt is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding XRP and Kngt Clb Larg in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kngt Clb Larg and XRP 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 XRP are associated (or correlated) with Kngt Clb. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kngt Clb Larg has no effect on the direction of XRP i.e., XRP and Kngt Clb go up and down completely randomly.

Pair Corralation between XRP and Kngt Clb

Assuming the 90 days trading horizon XRP is expected to generate 5.96 times more return on investment than Kngt Clb. However, XRP is 5.96 times more volatile than Kngt Clb Larg. It trades about 0.18 of its potential returns per unit of risk. Kngt Clb Larg is currently generating about 0.1 per unit of risk. If you would invest  54.00  in XRP on October 9, 2024 and sell it today you would earn a total of  176.00  from holding XRP or generate 325.93% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	89.19%
Values	Daily Returns

XRP  vs.  Kngt Clb Larg

XRP

Risk-Adjusted Performance

26 of 100

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in XRP are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, XRP exhibited solid returns over the last few months and may actually be approaching a breakup point.

Kngt Clb Larg

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Kngt Clb Larg are ranked lower than 7 (%) of all funds and portfolios of funds over the last 90 days. In spite of fairly strong forward indicators, Kngt Clb is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with XRP and Kngt Clb

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

The idea behind XRP and Kngt Clb Larg 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 Stocks Directory module to find actively traded stocks across global markets.