Correlation Between Binance Coin and Pathfinder Bancorp
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Pathfinder Bancorp 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 Pathfinder Bancorp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Pathfinder Bancorp, you can compare the effects of market volatilities on Binance Coin and Pathfinder Bancorp 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 Pathfinder Bancorp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Pathfinder Bancorp.
Diversification Opportunities for Binance Coin and Pathfinder Bancorp
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binance and Pathfinder is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Pathfinder Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Pathfinder Bancorp 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 Pathfinder Bancorp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Pathfinder Bancorp has no effect on the direction of Binance Coin i.e., Binance Coin and Pathfinder Bancorp go up and down completely randomly.
Pair Corralation between Binance Coin and Pathfinder Bancorp
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Pathfinder Bancorp. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 1.52 times less risky than Pathfinder Bancorp. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Pathfinder Bancorp is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,696 in Pathfinder Bancorp on November 2, 2024 and sell it today you would earn a total of 4.00 from holding Pathfinder Bancorp or generate 0.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 90.48% |
| Values | Daily Returns |
Binance Coin vs. Pathfinder Bancorp
Performance |
| Timeline |
| Binance Coin |
| Pathfinder Bancorp |
Binance Coin and Pathfinder Bancorp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Pathfinder Bancorp
The main advantage of trading using opposite Binance Coin and Pathfinder Bancorp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Pathfinder Bancorp 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 Pathfinder Bancorp will offset losses from the drop in Pathfinder Bancorp's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Pathfinder Bancorp vs. Home Federal Bancorp | Pathfinder Bancorp vs. Lake Shore Bancorp | Pathfinder Bancorp vs. Magyar Bancorp | Pathfinder Bancorp vs. Community West Bancshares |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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