Correlation Between Tokocrypto and KCASH

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

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

Diversification Opportunities for Tokocrypto and KCASH

0.0

Correlation Coefficient

Tokocrypto  KCASH

Pay attention - limited upside

The 3 months correlation between Tokocrypto and KCASH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Tokocrypto and KCASH in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KCASH and Tokocrypto 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 Tokocrypto are associated (or correlated) with KCASH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KCASH has no effect on the direction of Tokocrypto i.e., Tokocrypto and KCASH go up and down completely randomly.

Pair Corralation between Tokocrypto and KCASH

If you would invest  29.00  in Tokocrypto on September 4, 2024 and sell it today you would earn a total of  12.00  from holding Tokocrypto or generate 41.38% return on investment over 90 days.

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

Tokocrypto  vs.  KCASH

Tokocrypto

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tokocrypto are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Tokocrypto exhibited solid returns over the last few months and may actually be approaching a breakup point.

KCASH

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days KCASH has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental indicators, KCASH is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Tokocrypto and KCASH

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

The idea behind Tokocrypto and KCASH 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.