Correlation Between Binance Coin and AGL Resources
Can any of the company-specific risk be diversified away by investing in both Binance Coin and AGL Resources 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 AGL Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and AGL Resources, you can compare the effects of market volatilities on Binance Coin and AGL Resources 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 AGL Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and AGL Resources.
Diversification Opportunities for Binance Coin and AGL Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and AGL is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and AGL Resources in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AGL Resources 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 AGL Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AGL Resources has no effect on the direction of Binance Coin i.e., Binance Coin and AGL Resources go up and down completely randomly.
Pair Corralation between Binance Coin and AGL Resources
If you would invest 60,630 in Binance Coin on October 26, 2024 and sell it today you would earn a total of 7,910 from holding Binance Coin or generate 13.05% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
Binance Coin vs. AGL Resources
Performance |
Timeline |
Binance Coin |
AGL Resources |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binance Coin and AGL Resources Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Binance Coin and AGL Resources
The main advantage of trading using opposite Binance Coin and AGL Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, AGL Resources 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 AGL Resources will offset losses from the drop in AGL Resources' 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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