Correlation Between Binance Coin and Guangzhou Fangbang
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By analyzing existing cross correlation between Binance Coin and Guangzhou Fangbang Electronics, you can compare the effects of market volatilities on Binance Coin and Guangzhou Fangbang 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 Guangzhou Fangbang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Guangzhou Fangbang.
Diversification Opportunities for Binance Coin and Guangzhou Fangbang
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binance and Guangzhou is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Guangzhou Fangbang Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Fangbang 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 Guangzhou Fangbang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Fangbang has no effect on the direction of Binance Coin i.e., Binance Coin and Guangzhou Fangbang go up and down completely randomly.
Pair Corralation between Binance Coin and Guangzhou Fangbang
Assuming the 90 days trading horizon Binance Coin is expected to generate 2.2 times more return on investment than Guangzhou Fangbang. However, Binance Coin is 2.2 times more volatile than Guangzhou Fangbang Electronics. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Fangbang Electronics is currently generating about 0.0 per unit of risk. If you would invest 30,486 in Binance Coin on October 16, 2024 and sell it today you would earn a total of 38,444 from holding Binance Coin or generate 126.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 62.13% |
| Values | Daily Returns |
Binance Coin vs. Guangzhou Fangbang Electronics
Performance |
| Timeline |
| Binance Coin |
| Guangzhou Fangbang |
Binance Coin and Guangzhou Fangbang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Guangzhou Fangbang
The main advantage of trading using opposite Binance Coin and Guangzhou Fangbang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Guangzhou Fangbang 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 Guangzhou Fangbang will offset losses from the drop in Guangzhou Fangbang's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Guangzhou Fangbang vs. Universal Scientific Industrial | Guangzhou Fangbang vs. Jiaozuo Wanfang Aluminum | Guangzhou Fangbang vs. Porton Fine Chemicals | Guangzhou Fangbang vs. Shanghai Yanpu Metal |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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