Correlation Between Binance Coin and Hanwha Life
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Hanwha Life 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 Hanwha Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Hanwha Life Insurance, you can compare the effects of market volatilities on Binance Coin and Hanwha Life 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 Hanwha Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Hanwha Life.
Diversification Opportunities for Binance Coin and Hanwha Life
-0.81 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and Hanwha is -0.81. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Hanwha Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hanwha Life Insurance 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 Hanwha Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hanwha Life Insurance has no effect on the direction of Binance Coin i.e., Binance Coin and Hanwha Life go up and down completely randomly.
Pair Corralation between Binance Coin and Hanwha Life
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.63 times more return on investment than Hanwha Life. However, Binance Coin is 1.63 times more volatile than Hanwha Life Insurance. It trades about 0.04 of its potential returns per unit of risk. Hanwha Life Insurance is currently generating about 0.0 per unit of risk. If you would invest 60,233 in Binance Coin on October 12, 2024 and sell it today you would earn a total of 8,537 from holding Binance Coin or generate 14.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 92.78% |
| Values | Daily Returns |
Binance Coin vs. Hanwha Life Insurance
Performance |
| Timeline |
| Binance Coin |
| Hanwha Life Insurance |
Binance Coin and Hanwha Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Hanwha Life
The main advantage of trading using opposite Binance Coin and Hanwha Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Hanwha Life 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 Hanwha Life will offset losses from the drop in Hanwha Life's 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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