Correlation Between Binance Coin and Guangdong Jingyi
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By analyzing existing cross correlation between Binance Coin and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Binance Coin and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Guangdong Jingyi.
Diversification Opportunities for Binance Coin and Guangdong Jingyi
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binance and Guangdong is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Binance Coin i.e., Binance Coin and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Binance Coin and Guangdong Jingyi
Assuming the 90 days trading horizon Binance Coin is expected to generate 3.31 times more return on investment than Guangdong Jingyi. However, Binance Coin is 3.31 times more volatile than Guangdong Jingyi Metal. It trades about 0.06 of its potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.01 per unit of risk. If you would invest 29,623 in Binance Coin on November 2, 2024 and sell it today you would earn a total of 38,193 from holding Binance Coin or generate 128.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 62.21% |
| Values | Daily Returns |
Binance Coin vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Binance Coin |
| Guangdong Jingyi Metal |
Binance Coin and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Guangdong Jingyi
The main advantage of trading using opposite Binance Coin and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Guangdong Jingyi vs. Sinomach Automobile Co | Guangdong Jingyi vs. Pengxin International Mining | Guangdong Jingyi vs. Fiberhome Telecommunication Technologies | Guangdong Jingyi vs. Shengda Mining Co |
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 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.
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