Correlation Between Binance Coin and Oriental Hotels
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By analyzing existing cross correlation between Binance Coin and Oriental Hotels Limited, you can compare the effects of market volatilities on Binance Coin and Oriental Hotels 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 Oriental Hotels. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Oriental Hotels.
Diversification Opportunities for Binance Coin and Oriental Hotels
0.13 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binance and Oriental is 0.13. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Oriental Hotels Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oriental Hotels 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 Oriental Hotels. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oriental Hotels has no effect on the direction of Binance Coin i.e., Binance Coin and Oriental Hotels go up and down completely randomly.
Pair Corralation between Binance Coin and Oriental Hotels
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.53 times more return on investment than Oriental Hotels. However, Binance Coin is 1.87 times less risky than Oriental Hotels. It trades about -0.16 of its potential returns per unit of risk. Oriental Hotels Limited is currently generating about -0.31 per unit of risk. If you would invest 71,453 in Binance Coin on November 2, 2024 and sell it today you would lose (3,637) from holding Binance Coin or give up 5.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Oriental Hotels Limited
Performance |
| Timeline |
| Binance Coin |
| Oriental Hotels |
Binance Coin and Oriental Hotels Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Oriental Hotels
The main advantage of trading using opposite Binance Coin and Oriental Hotels positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Oriental Hotels 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 Oriental Hotels will offset losses from the drop in Oriental Hotels' 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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