Correlation Between Binance Coin and I Components
Can any of the company-specific risk be diversified away by investing in both Binance Coin and I Components 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 I Components into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and i Components Co, you can compare the effects of market volatilities on Binance Coin and I Components 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 I Components. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and I Components.
Diversification Opportunities for Binance Coin and I Components
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binance and 059100 is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and i Components Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on i Components 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 I Components. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of i Components has no effect on the direction of Binance Coin i.e., Binance Coin and I Components go up and down completely randomly.
Pair Corralation between Binance Coin and I Components
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the I Components. In addition to that, Binance Coin is 1.08 times more volatile than i Components Co. It trades about -0.09 of its total potential returns per unit of risk. i Components Co is currently generating about 0.34 per unit of volatility. If you would invest 470,000 in i Components Co on October 13, 2024 and sell it today you would earn a total of 68,000 from holding i Components Co or generate 14.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 90.91% |
| Values | Daily Returns |
Binance Coin vs. i Components Co
Performance |
| Timeline |
| Binance Coin |
| i Components |
Binance Coin and I Components Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and I Components
The main advantage of trading using opposite Binance Coin and I Components positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, I Components 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 I Components will offset losses from the drop in I Components' 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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