Correlation Between Binance Coin and SAIHEAT
Can any of the company-specific risk be diversified away by investing in both Binance Coin and SAIHEAT 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 SAIHEAT into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and SAIHEAT Limited, you can compare the effects of market volatilities on Binance Coin and SAIHEAT 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 SAIHEAT. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and SAIHEAT.
Diversification Opportunities for Binance Coin and SAIHEAT
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binance and SAIHEAT is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and SAIHEAT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SAIHEAT Limited 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 SAIHEAT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SAIHEAT Limited has no effect on the direction of Binance Coin i.e., Binance Coin and SAIHEAT go up and down completely randomly.
Pair Corralation between Binance Coin and SAIHEAT
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.73 times less return on investment than SAIHEAT. But when comparing it to its historical volatility, Binance Coin is 3.76 times less risky than SAIHEAT. It trades about 0.11 of its potential returns per unit of risk. SAIHEAT Limited is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 82.00 in SAIHEAT Limited on November 2, 2024 and sell it today you would earn a total of 5.00 from holding SAIHEAT Limited or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.26% |
| Values | Daily Returns |
Binance Coin vs. SAIHEAT Limited
Performance |
| Timeline |
| Binance Coin |
| SAIHEAT Limited |
Binance Coin and SAIHEAT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and SAIHEAT
The main advantage of trading using opposite Binance Coin and SAIHEAT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, SAIHEAT 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 SAIHEAT will offset losses from the drop in SAIHEAT'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 CEOs Directory module to screen CEOs from public companies around the world.
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