Correlation Between Binance Coin and Nanning Chemical
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By analyzing existing cross correlation between Binance Coin and Nanning Chemical Industry, you can compare the effects of market volatilities on Binance Coin and Nanning Chemical 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 Nanning Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Nanning Chemical.
Diversification Opportunities for Binance Coin and Nanning Chemical
-0.47 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binance and Nanning is -0.47. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Nanning Chemical Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanning Chemical Industry 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 Nanning Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanning Chemical Industry has no effect on the direction of Binance Coin i.e., Binance Coin and Nanning Chemical go up and down completely randomly.
Pair Corralation between Binance Coin and Nanning Chemical
Assuming the 90 days trading horizon Binance Coin is expected to generate 3.03 times more return on investment than Nanning Chemical. However, Binance Coin is 3.03 times more volatile than Nanning Chemical Industry. It trades about 0.05 of its potential returns per unit of risk. Nanning Chemical Industry is currently generating about 0.02 per unit of risk. If you would invest 33,298 in Binance Coin on October 27, 2024 and sell it today you would earn a total of 34,742 from holding Binance Coin or generate 104.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 61.83% |
| Values | Daily Returns |
Binance Coin vs. Nanning Chemical Industry
Performance |
| Timeline |
| Binance Coin |
| Nanning Chemical Industry |
Binance Coin and Nanning Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Nanning Chemical
The main advantage of trading using opposite Binance Coin and Nanning Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Nanning Chemical 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 Nanning Chemical will offset losses from the drop in Nanning Chemical'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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