Correlation Between Binance Coin and Huize Holding
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Huize Holding 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 Huize Holding into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Huize Holding, you can compare the effects of market volatilities on Binance Coin and Huize Holding 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 Huize Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Huize Holding.
Diversification Opportunities for Binance Coin and Huize Holding
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binance and Huize is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Huize Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huize Holding 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 Huize Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huize Holding has no effect on the direction of Binance Coin i.e., Binance Coin and Huize Holding go up and down completely randomly.
Pair Corralation between Binance Coin and Huize Holding
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Huize Holding. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 2.57 times less risky than Huize Holding. The crypto coin trades about -0.17 of its potential returns per unit of risk. The Huize Holding is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 323.00 in Huize Holding on November 1, 2024 and sell it today you would earn a total of 9.00 from holding Huize Holding or generate 2.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Binance Coin vs. Huize Holding
Performance |
| Timeline |
| Binance Coin |
| Huize Holding |
Binance Coin and Huize Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Huize Holding
The main advantage of trading using opposite Binance Coin and Huize Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Huize Holding 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 Huize Holding will offset losses from the drop in Huize Holding's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Huize Holding vs. CorVel Corp | Huize Holding vs. Erie Indemnity | Huize Holding vs. Crawford Company | Huize Holding vs. eHealth |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |