Correlation Between Binance Coin and Thai Life
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Thai Life 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 Thai Life into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Thai Life Insurance, you can compare the effects of market volatilities on Binance Coin and Thai Life 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 Thai Life. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Thai Life.
Diversification Opportunities for Binance Coin and Thai Life
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Binance and Thai is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Thai Life Insurance in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thai Life Insurance 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 Thai Life. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thai Life Insurance has no effect on the direction of Binance Coin i.e., Binance Coin and Thai Life go up and down completely randomly.
Pair Corralation between Binance Coin and Thai Life
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Thai Life. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 1.22 times less risky than Thai Life. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Thai Life Insurance is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,080 in Thai Life Insurance on November 2, 2024 and sell it today you would earn a total of 20.00 from holding Thai Life Insurance or generate 1.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Thai Life Insurance
Performance |
| Timeline |
| Binance Coin |
| Thai Life Insurance |
Binance Coin and Thai Life Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Thai Life
The main advantage of trading using opposite Binance Coin and Thai Life positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Thai Life 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 Thai Life will offset losses from the drop in Thai Life's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Thai Life vs. Bangkok Life Assurance | Thai Life vs. PTT Oil and | Thai Life vs. Home Product Center | Thai Life vs. Muangthai Capital Public |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk |