Correlation Between Binance Coin and Sun Peak
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Sun Peak 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 Sun Peak into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Sun Peak Metals, you can compare the effects of market volatilities on Binance Coin and Sun Peak 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 Sun Peak. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Sun Peak.
Diversification Opportunities for Binance Coin and Sun Peak
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and Sun is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Sun Peak Metals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sun Peak Metals 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 Sun Peak. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sun Peak Metals has no effect on the direction of Binance Coin i.e., Binance Coin and Sun Peak go up and down completely randomly.
Pair Corralation between Binance Coin and Sun Peak
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.5 times more return on investment than Sun Peak. However, Binance Coin is 2.01 times less risky than Sun Peak. It trades about 0.06 of its potential returns per unit of risk. Sun Peak Metals is currently generating about -0.01 per unit of risk. If you would invest 67,728 in Binance Coin on October 10, 2024 and sell it today you would earn a total of 1,862 from holding Binance Coin or generate 2.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.91% |
| Values | Daily Returns |
Binance Coin vs. Sun Peak Metals
Performance |
| Timeline |
| Binance Coin |
| Sun Peak Metals |
Binance Coin and Sun Peak Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Sun Peak
The main advantage of trading using opposite Binance Coin and Sun Peak positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Sun Peak 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 Sun Peak will offset losses from the drop in Sun Peak's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Sun Peak vs. Millbank Mining Corp | Sun Peak vs. Hampton Financial Corp | Sun Peak vs. Fairfax Financial Holdings | Sun Peak vs. VersaBank |
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.
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