Correlation Between Binance Coin and Jinlong Machinery
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By analyzing existing cross correlation between Binance Coin and Jinlong Machinery Electronic, you can compare the effects of market volatilities on Binance Coin and Jinlong Machinery 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 Jinlong Machinery. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Jinlong Machinery.
Diversification Opportunities for Binance Coin and Jinlong Machinery
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between Binance and Jinlong is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Jinlong Machinery Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinlong Machinery 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 Jinlong Machinery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinlong Machinery has no effect on the direction of Binance Coin i.e., Binance Coin and Jinlong Machinery go up and down completely randomly.
Pair Corralation between Binance Coin and Jinlong Machinery
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.62 times more return on investment than Jinlong Machinery. However, Binance Coin is 1.62 times less risky than Jinlong Machinery. It trades about -0.03 of its potential returns per unit of risk. Jinlong Machinery Electronic is currently generating about -0.3 per unit of risk. If you would invest 71,176 in Binance Coin on October 11, 2024 and sell it today you would lose (1,586) from holding Binance Coin or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Jinlong Machinery Electronic
Performance |
| Timeline |
| Binance Coin |
| Jinlong Machinery |
Binance Coin and Jinlong Machinery Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Jinlong Machinery
The main advantage of trading using opposite Binance Coin and Jinlong Machinery positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Jinlong Machinery 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 Jinlong Machinery will offset losses from the drop in Jinlong Machinery'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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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