Correlation Between WhiteBIT Token and KEY
Can any of the company-specific risk be diversified away by investing in both WhiteBIT Token and KEY 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 WhiteBIT Token and KEY into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WhiteBIT Token and KEY, you can compare the effects of market volatilities on WhiteBIT Token and KEY 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 WhiteBIT Token with a short position of KEY. Check out your portfolio center. Please also check ongoing floating volatility patterns of WhiteBIT Token and KEY.
Diversification Opportunities for WhiteBIT Token and KEY
-0.8 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WhiteBIT and KEY is -0.8. Overlapping area represents the amount of risk that can be diversified away by holding WhiteBIT Token and KEY in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on KEY and WhiteBIT Token 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 WhiteBIT Token are associated (or correlated) with KEY. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of KEY has no effect on the direction of WhiteBIT Token i.e., WhiteBIT Token and KEY go up and down completely randomly.
Pair Corralation between WhiteBIT Token and KEY
Assuming the 90 days trading horizon WhiteBIT Token is expected to generate 0.43 times more return on investment than KEY. However, WhiteBIT Token is 2.33 times less risky than KEY. It trades about 0.54 of its potential returns per unit of risk. KEY is currently generating about -0.05 per unit of risk. If you would invest 1,828 in WhiteBIT Token on August 23, 2024 and sell it today you would earn a total of 649.00 from holding WhiteBIT Token or generate 35.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WhiteBIT Token vs. KEY
Performance |
| Timeline |
| WhiteBIT Token |
| KEY |
WhiteBIT Token and KEY Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WhiteBIT Token and KEY
The main advantage of trading using opposite WhiteBIT Token and KEY positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WhiteBIT Token position performs unexpectedly, KEY 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 KEY will offset losses from the drop in KEY's long position.| WhiteBIT Token vs. Solana | WhiteBIT Token vs. XRP | WhiteBIT Token vs. Sui | WhiteBIT Token vs. Staked Ether |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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