Correlation Between Binance Coin and Amicus Therapeutics
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Amicus Therapeutics 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 Amicus Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Amicus Therapeutics, you can compare the effects of market volatilities on Binance Coin and Amicus Therapeutics 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 Amicus Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Amicus Therapeutics.
Diversification Opportunities for Binance Coin and Amicus Therapeutics
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binance and Amicus is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Amicus Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Amicus Therapeutics 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 Amicus Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Amicus Therapeutics has no effect on the direction of Binance Coin i.e., Binance Coin and Amicus Therapeutics go up and down completely randomly.
Pair Corralation between Binance Coin and Amicus Therapeutics
Assuming the 90 days trading horizon Binance Coin is expected to generate 3.56 times more return on investment than Amicus Therapeutics. However, Binance Coin is 3.56 times more volatile than Amicus Therapeutics. It trades about 0.06 of its potential returns per unit of risk. Amicus Therapeutics is currently generating about -0.01 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 Against |
| Strength | Very Weak |
| Accuracy | 60.32% |
| Values | Daily Returns |
Binance Coin vs. Amicus Therapeutics
Performance |
| Timeline |
| Binance Coin |
| Amicus Therapeutics |
Binance Coin and Amicus Therapeutics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Amicus Therapeutics
The main advantage of trading using opposite Binance Coin and Amicus Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Amicus Therapeutics 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 Amicus Therapeutics will offset losses from the drop in Amicus Therapeutics' long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Amicus Therapeutics vs. Incyte | Amicus Therapeutics vs. Denali Therapeutics | Amicus Therapeutics vs. argenx NV ADR | Amicus Therapeutics vs. Harmony Biosciences 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |