In this short video we talk about the correlations between SPS and DEC, and correctly building a strategy that respects this correlation.
We go over positive and negative correlations and then jump into some technical analysis and some exercises to help you understand these correlations. Why is this important? If we can identify that two assets are positively correlated, your risk is generally magnified and you have a greater exposure to the market. Inversely, if you have a number of non-correlated assets, this mean’s you will have less risk exposure which will help you develop a more diversified portfolio.
To find if correlation exists between two assets we can use the correlation coefficient indicator available on most charting platforms, this indicator helps us find periods of positive correlation aswell as periods of negative correlation. I explain how you too can use this indicator to determine correlations.
Finally, we go over a DEC token's technical analysis and current price movements.
DISCLAIMER: None of the information contained within this video should be considered financial advice. If you intend to invest your own capital, you should always speak with an investment professional or do your own research.
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