Correlation Between Binance Coin and Blade Air
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Blade Air 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 Blade Air into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Blade Air Mobility, you can compare the effects of market volatilities on Binance Coin and Blade Air 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 Blade Air. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Blade Air.
Diversification Opportunities for Binance Coin and Blade Air
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Binance and Blade is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Blade Air Mobility in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blade Air Mobility 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 Blade Air. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blade Air Mobility has no effect on the direction of Binance Coin i.e., Binance Coin and Blade Air go up and down completely randomly.
Pair Corralation between Binance Coin and Blade Air
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.37 times less return on investment than Blade Air. But when comparing it to its historical volatility, Binance Coin is 2.81 times less risky than Blade Air. It trades about 0.15 of its potential returns per unit of risk. Blade Air Mobility is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 392.00 in Blade Air Mobility on October 20, 2024 and sell it today you would earn a total of 19.00 from holding Blade Air Mobility or generate 4.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 86.36% |
| Values | Daily Returns |
Binance Coin vs. Blade Air Mobility
Performance |
| Timeline |
| Binance Coin |
| Blade Air Mobility |
Binance Coin and Blade Air Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Blade Air
The main advantage of trading using opposite Binance Coin and Blade Air positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Blade Air 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 Blade Air will offset losses from the drop in Blade Air's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Blade Air vs. Grupo Aeroportuario del | Blade Air vs. Auckland International Airport | Blade Air vs. Aeroports de Paris | Blade Air vs. Aena SME SA |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins |