Correlation Between Binance Coin and Icosavax
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Icosavax 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 Icosavax into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Icosavax, you can compare the effects of market volatilities on Binance Coin and Icosavax 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 Icosavax. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Icosavax.
Diversification Opportunities for Binance Coin and Icosavax
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Binance and Icosavax is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Icosavax in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Icosavax 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 Icosavax. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Icosavax has no effect on the direction of Binance Coin i.e., Binance Coin and Icosavax go up and down completely randomly.
Pair Corralation between Binance Coin and Icosavax
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.54 times more return on investment than Icosavax. However, Binance Coin is 1.54 times more volatile than Icosavax. It trades about 0.06 of its potential returns per unit of risk. Icosavax is currently generating about 0.02 per unit of risk. If you would invest 31,211 in Binance Coin on October 21, 2024 and sell it today you would earn a total of 39,667 from holding Binance Coin or generate 127.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 40.8% |
| Values | Daily Returns |
Binance Coin vs. Icosavax
Performance |
| Timeline |
| Binance Coin |
| Icosavax |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binance Coin and Icosavax Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Icosavax
The main advantage of trading using opposite Binance Coin and Icosavax positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Icosavax 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 Icosavax will offset losses from the drop in Icosavax'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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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