Correlation Between Binance Coin and All Things
Can any of the company-specific risk be diversified away by investing in both Binance Coin and All Things 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 All Things into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and All Things Mobile, you can compare the effects of market volatilities on Binance Coin and All Things 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 All Things. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and All Things.
Diversification Opportunities for Binance Coin and All Things
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binance and All is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and All Things Mobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on All Things Mobile 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 All Things. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of All Things Mobile has no effect on the direction of Binance Coin i.e., Binance Coin and All Things go up and down completely randomly.
Pair Corralation between Binance Coin and All Things
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.39 times more return on investment than All Things. However, Binance Coin is 2.55 times less risky than All Things. It trades about -0.03 of its potential returns per unit of risk. All Things Mobile is currently generating about -0.06 per unit of risk. If you would invest 71,176 in Binance Coin on October 11, 2024 and sell it today you would lose (1,586) from holding Binance Coin or give up 2.23% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 95.24% |
Values | Daily Returns |
Binance Coin vs. All Things Mobile
Performance |
Timeline |
Binance Coin |
All Things Mobile |
Binance Coin and All Things Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Binance Coin and All Things
The main advantage of trading using opposite Binance Coin and All Things positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, All Things 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 All Things will offset losses from the drop in All Things' long position.Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
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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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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