Correlation Between Binance Coin and Xeros Technology
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Xeros Technology 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 Xeros Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Xeros Technology Group, you can compare the effects of market volatilities on Binance Coin and Xeros Technology 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 Xeros Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Xeros Technology.
Diversification Opportunities for Binance Coin and Xeros Technology
-0.74 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Binance and Xeros is -0.74. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Xeros Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xeros Technology 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 Xeros Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xeros Technology has no effect on the direction of Binance Coin i.e., Binance Coin and Xeros Technology go up and down completely randomly.
Pair Corralation between Binance Coin and Xeros Technology
Assuming the 90 days trading horizon Binance Coin is expected to under-perform the Xeros Technology. But the crypto coin apears to be less risky and, when comparing its historical volatility, Binance Coin is 3.26 times less risky than Xeros Technology. The crypto coin trades about -0.04 of its potential returns per unit of risk. The Xeros Technology Group is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 43.00 in Xeros Technology Group on October 17, 2024 and sell it today you would earn a total of 10.00 from holding Xeros Technology Group or generate 23.26% 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. Xeros Technology Group
Performance |
| Timeline |
| Binance Coin |
| Xeros Technology |
Binance Coin and Xeros Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Xeros Technology
The main advantage of trading using opposite Binance Coin and Xeros Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Xeros Technology 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 Xeros Technology will offset losses from the drop in Xeros Technology's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Xeros Technology vs. Taiwan Semiconductor Manufacturing | Xeros Technology vs. XLMedia PLC | Xeros Technology vs. Zinc Media Group | Xeros Technology vs. Liberty Media Corp |
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
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance |