Correlation Between Binance Coin and Guangdong Tianhe
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By analyzing existing cross correlation between Binance Coin and Guangdong Tianhe Agricultural, you can compare the effects of market volatilities on Binance Coin and Guangdong Tianhe 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 Tianhe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Guangdong Tianhe.
Diversification Opportunities for Binance Coin and Guangdong Tianhe
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Binance and Guangdong is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Guangdong Tianhe Agricultural in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Tianhe Agr 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 Tianhe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Tianhe Agr has no effect on the direction of Binance Coin i.e., Binance Coin and Guangdong Tianhe go up and down completely randomly.
Pair Corralation between Binance Coin and Guangdong Tianhe
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Guangdong Tianhe. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 1.71 times less risky than Guangdong Tianhe. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Guangdong Tianhe Agricultural is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 621.00 in Guangdong Tianhe Agricultural on October 28, 2024 and sell it today you would lose (22.00) from holding Guangdong Tianhe Agricultural or give up 3.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Guangdong Tianhe Agricultural
Performance |
| Timeline |
| Binance Coin |
| Guangdong Tianhe Agr |
Binance Coin and Guangdong Tianhe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Guangdong Tianhe
The main advantage of trading using opposite Binance Coin and Guangdong Tianhe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Guangdong Tianhe 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 Tianhe will offset losses from the drop in Guangdong Tianhe's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Guangdong Tianhe vs. Beijing Kingsoft Office | Guangdong Tianhe vs. Jiangsu Jinling Sports | Guangdong Tianhe vs. Shenzhen Urban Transport | Guangdong Tianhe vs. China World Trade |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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