Correlation Between Binance Coin and ABF Thailand

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

By analyzing existing cross correlation between Binance Coin and The ABF Thailand, you can compare the effects of market volatilities on Binance Coin and ABF Thailand 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 ABF Thailand. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and ABF Thailand.

Diversification Opportunities for Binance Coin and ABF Thailand

0.0

Correlation Coefficient

Binance Coin  ABF Thailand

Pay attention - limited upside

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

Pair Corralation between Binance Coin and ABF Thailand

If you would invest  133,000  in The ABF Thailand on December 21, 2024 and sell it today you would earn a total of  0.00  from holding The ABF Thailand or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Binance Coin  vs.  The ABF Thailand

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.

ABF Thailand

Risk-Adjusted Performance

Very Weak

Over the last 90 days The ABF Thailand has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong fundamental drivers, ABF Thailand is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with Binance Coin and ABF Thailand

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

The idea behind Binance Coin and The ABF Thailand 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.