Correlation Between Binance Coin and Baywa AG
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By analyzing existing cross correlation between Binance Coin and Baywa AG Vink, you can compare the effects of market volatilities on Binance Coin and Baywa AG 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 Baywa AG. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Baywa AG.
Diversification Opportunities for Binance Coin and Baywa AG
0.28 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Binance and Baywa is 0.28. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Baywa AG Vink in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Baywa AG Vink 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 Baywa AG. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Baywa AG Vink has no effect on the direction of Binance Coin i.e., Binance Coin and Baywa AG go up and down completely randomly.
Pair Corralation between Binance Coin and Baywa AG
Assuming the 90 days trading horizon Binance Coin is expected to generate 2.6 times more return on investment than Baywa AG. However, Binance Coin is 2.6 times more volatile than Baywa AG Vink. It trades about 0.06 of its potential returns per unit of risk. Baywa AG Vink is currently generating about -0.06 per unit of risk. If you would invest 29,623 in Binance Coin on November 2, 2024 and sell it today you would earn a total of 38,193 from holding Binance Coin or generate 128.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 59.48% |
| Values | Daily Returns |
Binance Coin vs. Baywa AG Vink
Performance |
| Timeline |
| Binance Coin |
| Baywa AG Vink |
Binance Coin and Baywa AG Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Baywa AG
The main advantage of trading using opposite Binance Coin and Baywa AG positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Baywa AG 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 Baywa AG will offset losses from the drop in Baywa AG'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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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