Correlation Between Binance Coin and SAI Old
Can any of the company-specific risk be diversified away by investing in both Binance Coin and SAI Old 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 SAI Old into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and SAI Old, you can compare the effects of market volatilities on Binance Coin and SAI Old 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 SAI Old. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and SAI Old.
Diversification Opportunities for Binance Coin and SAI Old
-0.36 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Binance and SAI is -0.36. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and SAI Old in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAI Old 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 SAI Old. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAI Old has no effect on the direction of Binance Coin i.e., Binance Coin and SAI Old go up and down completely randomly.
Pair Corralation between Binance Coin and SAI Old
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.05 times less return on investment than SAI Old. But when comparing it to its historical volatility, Binance Coin is 1.48 times less risky than SAI Old. It trades about 0.06 of its potential returns per unit of risk. SAI Old is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 138.00 in SAI Old on October 12, 2024 and sell it today you would lose (21.00) from holding SAI Old or give up 15.22% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 64.85% |
| Values | Daily Returns |
Binance Coin vs. SAI Old
Performance |
| Timeline |
| Binance Coin |
| SAI Old |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
Binance Coin and SAI Old Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and SAI Old
The main advantage of trading using opposite Binance Coin and SAI Old positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, SAI Old 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 SAI Old will offset losses from the drop in SAI Old's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| SAI Old vs. Zhong Yang Financial | SAI Old vs. Netcapital | SAI Old vs. Magic Empire Global | SAI Old vs. Applied Digital |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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