Correlation Between Binance Coin and Mammoth Energy
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Mammoth Energy 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 Mammoth Energy into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Mammoth Energy Services, you can compare the effects of market volatilities on Binance Coin and Mammoth Energy 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 Mammoth Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Mammoth Energy.
Diversification Opportunities for Binance Coin and Mammoth Energy
-0.71 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and Mammoth is -0.71. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Mammoth Energy Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mammoth Energy Services 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 Mammoth Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mammoth Energy Services has no effect on the direction of Binance Coin i.e., Binance Coin and Mammoth Energy go up and down completely randomly.
Pair Corralation between Binance Coin and Mammoth Energy
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Mammoth Energy. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 2.33 times less risky than Mammoth Energy. The crypto coin trades about -0.16 of its potential returns per unit of risk. The Mammoth Energy Services is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 298.00 in Mammoth Energy Services on November 2, 2024 and sell it today you would earn a total of 1.00 from holding Mammoth Energy Services or generate 0.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 90.48% |
| Values | Daily Returns |
Binance Coin vs. Mammoth Energy Services
Performance |
| Timeline |
| Binance Coin |
| Mammoth Energy Services |
Binance Coin and Mammoth Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Mammoth Energy
The main advantage of trading using opposite Binance Coin and Mammoth Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Mammoth Energy 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 Mammoth Energy will offset losses from the drop in Mammoth Energy's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Mammoth Energy vs. Matthews International | Mammoth Energy vs. Griffon | Mammoth Energy vs. Steel Partners Holdings | Mammoth Energy vs. Compass Diversified Holdings |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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