Correlation Between Binance Coin and MDJM
Can any of the company-specific risk be diversified away by investing in both Binance Coin and MDJM 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 MDJM into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and MDJM, you can compare the effects of market volatilities on Binance Coin and MDJM 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 MDJM. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and MDJM.
Diversification Opportunities for Binance Coin and MDJM
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Binance and MDJM is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and MDJM in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MDJM 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 MDJM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MDJM has no effect on the direction of Binance Coin i.e., Binance Coin and MDJM go up and down completely randomly.
Pair Corralation between Binance Coin and MDJM
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.12 times more return on investment than MDJM. However, Binance Coin is 1.12 times more volatile than MDJM. It trades about 0.06 of its potential returns per unit of risk. MDJM is currently generating about -0.01 per unit of risk. If you would invest 30,046 in Binance Coin on October 14, 2024 and sell it today you would earn a total of 39,605 from holding Binance Coin or generate 131.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 60.28% |
| Values | Daily Returns |
Binance Coin vs. MDJM
Performance |
| Timeline |
| Binance Coin |
| MDJM |
Binance Coin and MDJM Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and MDJM
The main advantage of trading using opposite Binance Coin and MDJM positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, MDJM 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 MDJM will offset losses from the drop in MDJM's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| MDJM vs. Old Republic International | MDJM vs. Selective Insurance Group | MDJM vs. SLR Investment Corp | MDJM vs. Cincinnati Financial |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |