Correlation Between Binance Coin and MEDICOX
Can any of the company-specific risk be diversified away by investing in both Binance Coin and MEDICOX 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 MEDICOX into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and MEDICOX Co, you can compare the effects of market volatilities on Binance Coin and MEDICOX 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 MEDICOX. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and MEDICOX.
Diversification Opportunities for Binance Coin and MEDICOX
0.34 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Binance and MEDICOX is 0.34. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and MEDICOX Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MEDICOX 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 MEDICOX. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MEDICOX has no effect on the direction of Binance Coin i.e., Binance Coin and MEDICOX go up and down completely randomly.
Pair Corralation between Binance Coin and MEDICOX
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.7 times more return on investment than MEDICOX. However, Binance Coin is 1.7 times more volatile than MEDICOX Co. It trades about 0.06 of its potential returns per unit of risk. MEDICOX Co is currently generating about -0.05 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 | Very Weak |
| Accuracy | 62.47% |
| Values | Daily Returns |
Binance Coin vs. MEDICOX Co
Performance |
| Timeline |
| Binance Coin |
| MEDICOX |
Binance Coin and MEDICOX Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and MEDICOX
The main advantage of trading using opposite Binance Coin and MEDICOX positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, MEDICOX 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 MEDICOX will offset losses from the drop in MEDICOX's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| MEDICOX vs. Korea Petro Chemical | MEDICOX vs. CJ Seafood Corp | MEDICOX vs. Hanil Chemical Ind | MEDICOX vs. Tae Kyung Chemical |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |