Correlation Between Binance Coin and Kurv Yield
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Kurv Yield 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 Kurv Yield into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Kurv Yield Premium, you can compare the effects of market volatilities on Binance Coin and Kurv Yield 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 Kurv Yield. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Kurv Yield.
Diversification Opportunities for Binance Coin and Kurv Yield
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Binance and Kurv is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Kurv Yield Premium in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kurv Yield Premium 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 Kurv Yield. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kurv Yield Premium has no effect on the direction of Binance Coin i.e., Binance Coin and Kurv Yield go up and down completely randomly.
Pair Corralation between Binance Coin and Kurv Yield
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Kurv Yield. In addition to that, Binance Coin is 1.0 times more volatile than Kurv Yield Premium. It trades about -0.16 of its total potential returns per unit of risk. Kurv Yield Premium is currently generating about 0.14 per unit of volatility. If you would invest 2,958 in Kurv Yield Premium on November 2, 2024 and sell it today you would earn a total of 120.30 from holding Kurv Yield Premium or generate 4.07% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Binance Coin vs. Kurv Yield Premium
Performance |
| Timeline |
| Binance Coin |
| Kurv Yield Premium |
Binance Coin and Kurv Yield Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Kurv Yield
The main advantage of trading using opposite Binance Coin and Kurv Yield positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Kurv Yield 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 Kurv Yield will offset losses from the drop in Kurv Yield'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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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