Correlation Between Binance Coin and SinterCast
Can any of the company-specific risk be diversified away by investing in both Binance Coin and SinterCast 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 SinterCast into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and SinterCast AB, you can compare the effects of market volatilities on Binance Coin and SinterCast 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 SinterCast. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and SinterCast.
Diversification Opportunities for Binance Coin and SinterCast
-0.58 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binance and SinterCast is -0.58. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and SinterCast AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SinterCast AB 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 SinterCast. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SinterCast AB has no effect on the direction of Binance Coin i.e., Binance Coin and SinterCast go up and down completely randomly.
Pair Corralation between Binance Coin and SinterCast
Assuming the 90 days trading horizon Binance Coin is expected to generate 4.63 times more return on investment than SinterCast. However, Binance Coin is 4.63 times more volatile than SinterCast AB. It trades about 0.06 of its potential returns per unit of risk. SinterCast AB is currently generating about 0.01 per unit of risk. If you would invest 29,904 in Binance Coin on October 11, 2024 and sell it today you would earn a total of 38,866 from holding Binance Coin or generate 129.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 60.32% |
| Values | Daily Returns |
Binance Coin vs. SinterCast AB
Performance |
| Timeline |
| Binance Coin |
| SinterCast AB |
Binance Coin and SinterCast Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and SinterCast
The main advantage of trading using opposite Binance Coin and SinterCast positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, SinterCast 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 SinterCast will offset losses from the drop in SinterCast's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| SinterCast vs. CTT Systems AB | SinterCast vs. Studsvik AB | SinterCast vs. Proact IT Group | SinterCast vs. Rottneros AB |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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