Correlation Between Kusama and Big Time
Specify exactly 2 symbols:
By analyzing existing cross correlation between Kusama and Big Time, you can compare the effects of market volatilities on Kusama and Big Time 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 Kusama with a short position of Big Time. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kusama and Big Time.
Diversification Opportunities for Kusama and Big Time
Good diversification
The 3 months correlation between Kusama and Big is -0.12. Overlapping area represents the amount of risk that can be diversified away by holding Kusama and Big Time in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Big Time and Kusama 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 Kusama are associated (or correlated) with Big Time. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Big Time has no effect on the direction of Kusama i.e., Kusama and Big Time go up and down completely randomly.
Pair Corralation between Kusama and Big Time
Assuming the 90 days trading horizon Kusama is expected to under-perform the Big Time. But the crypto coin apears to be less risky and, when comparing its historical volatility, Kusama is 1.77 times less risky than Big Time. The crypto coin trades about 0.0 of its potential returns per unit of risk. The Big Time is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 21.00 in Big Time on August 23, 2024 and sell it today you would lose (7.00) from holding Big Time or give up 33.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 44.48% |
| Values | Daily Returns |
Kusama vs. Big Time
Performance |
| Timeline |
| Kusama |
| Big Time |
Kusama and Big Time Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kusama and Big Time
The main advantage of trading using opposite Kusama and Big Time positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kusama position performs unexpectedly, Big Time 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 Big Time will offset losses from the drop in Big Time's long position.The idea behind Kusama and Big Time 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |