Correlation Between Binance Coin and Eiffage SA
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Eiffage SA 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 Eiffage SA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Eiffage SA, you can compare the effects of market volatilities on Binance Coin and Eiffage SA 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 Eiffage SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Eiffage SA.
Diversification Opportunities for Binance Coin and Eiffage SA
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and Eiffage is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Eiffage SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Eiffage SA 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 Eiffage SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Eiffage SA has no effect on the direction of Binance Coin i.e., Binance Coin and Eiffage SA go up and down completely randomly.
Pair Corralation between Binance Coin and Eiffage SA
Assuming the 90 days trading horizon Binance Coin is expected to generate 4.36 times more return on investment than Eiffage SA. However, Binance Coin is 4.36 times more volatile than Eiffage SA. It trades about 0.06 of its potential returns per unit of risk. Eiffage SA is currently generating about 0.02 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 | Flat |
| Strength | Insignificant |
| Accuracy | 65.44% |
| Values | Daily Returns |
Binance Coin vs. Eiffage SA
Performance |
| Timeline |
| Binance Coin |
| Eiffage SA |
Binance Coin and Eiffage SA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Eiffage SA
The main advantage of trading using opposite Binance Coin and Eiffage SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Eiffage SA 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 Eiffage SA will offset losses from the drop in Eiffage SA's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Eiffage SA vs. Concrete Pumping Holdings | Eiffage SA vs. Orion Group Holdings | Eiffage SA vs. Matrix Service Co | Eiffage SA vs. Limbach Holdings |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |