Correlation Between Binance Coin and Oshaughnessy Market

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Can any of the company-specific risk be diversified away by investing in both Binance Coin and Oshaughnessy Market 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 Oshaughnessy Market into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Oshaughnessy Market Leaders, you can compare the effects of market volatilities on Binance Coin and Oshaughnessy Market 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 Oshaughnessy Market. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Oshaughnessy Market.

Diversification Opportunities for Binance Coin and Oshaughnessy Market

-0.04
  Correlation Coefficient

Good diversification

The 3 months correlation between Binance and Oshaughnessy is -0.04. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Oshaughnessy Market Leaders in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oshaughnessy Market 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 Oshaughnessy Market. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oshaughnessy Market has no effect on the direction of Binance Coin i.e., Binance Coin and Oshaughnessy Market go up and down completely randomly.

Pair Corralation between Binance Coin and Oshaughnessy Market

Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Oshaughnessy Market. In addition to that, Binance Coin is 3.41 times more volatile than Oshaughnessy Market Leaders. It trades about -0.04 of its total potential returns per unit of risk. Oshaughnessy Market Leaders is currently generating about 0.0 per unit of volatility. If you would invest  1,970  in Oshaughnessy Market Leaders on December 24, 2024 and sell it today you would lose (10.00) from holding Oshaughnessy Market Leaders or give up 0.51% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy93.75%
ValuesDaily Returns

Binance Coin  vs.  Oshaughnessy Market Leaders

 Performance 
       Timeline  
Binance Coin 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
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.
Oshaughnessy Market 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days Oshaughnessy Market Leaders has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong forward indicators, Oshaughnessy Market is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Binance Coin and Oshaughnessy Market Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Binance Coin and Oshaughnessy Market

The main advantage of trading using opposite Binance Coin and Oshaughnessy Market positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Oshaughnessy Market 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 Oshaughnessy Market will offset losses from the drop in Oshaughnessy Market's long position.
The idea behind Binance Coin and Oshaughnessy Market Leaders 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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