Correlation Between Binance Coin and Oaktree (lux)

Can any of the company-specific risk be diversified away by investing in both Binance Coin and Oaktree (lux) 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 Binance Coin and Oaktree (lux) into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Binance Coin and Oaktree Iii , you can compare the effects of market volatilities on Binance Coin and Oaktree (lux) 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 Binance Coin with a short position of Oaktree (lux). Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Oaktree (lux).

Diversification Opportunities for Binance Coin and Oaktree (lux)

-0.81

Correlation Coefficient

Binance Coin  Oaktree (lux)

Pay attention - limited upside

The 3 months correlation between Binance and Oaktree is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Oaktree Iii in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oaktree (lux) and Binance Coin 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 Binance Coin are associated (or correlated) with Oaktree (lux). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oaktree (lux) has no effect on the direction of Binance Coin i.e., Binance Coin and Oaktree (lux) go up and down completely randomly.

Pair Corralation between Binance Coin and Oaktree (lux)

Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Oaktree (lux). In addition to that, Binance Coin is 35.15 times more volatile than Oaktree Iii . It trades about -0.04 of its total potential returns per unit of risk. Oaktree Iii is currently generating about 0.28 per unit of volatility. If you would invest  13,501  in Oaktree Iii on December 24, 2024 and sell it today you would earn a total of  198.00  from holding Oaktree Iii or generate 1.47% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Significant
Accuracy	92.19%
Values	Daily Returns

Binance Coin  vs.  Oaktree Iii

Binance Coin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Binance Coin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unsteady performance, the Crypto's fundamental drivers remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for Binance Coin shareholders.

Oaktree (lux)

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Oaktree Iii are ranked lower than 21 (%) of all funds and portfolios of funds over the last 90 days. Despite nearly stable basic indicators, Oaktree (lux) is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Binance Coin and Oaktree (lux)

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

The idea behind Binance Coin and Oaktree Iii 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.