Correlation Between Binance Coin and YPF Sociedad
Can any of the company-specific risk be diversified away by investing in both Binance Coin and YPF Sociedad 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 YPF Sociedad into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and YPF Sociedad Anonima, you can compare the effects of market volatilities on Binance Coin and YPF Sociedad 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 YPF Sociedad. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and YPF Sociedad.
Diversification Opportunities for Binance Coin and YPF Sociedad
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Binance and YPF is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and YPF Sociedad Anonima in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YPF Sociedad Anonima 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 YPF Sociedad. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YPF Sociedad Anonima has no effect on the direction of Binance Coin i.e., Binance Coin and YPF Sociedad go up and down completely randomly.
Pair Corralation between Binance Coin and YPF Sociedad
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.05 times more return on investment than YPF Sociedad. However, Binance Coin is 1.05 times more volatile than YPF Sociedad Anonima. It trades about 0.21 of its potential returns per unit of risk. YPF Sociedad Anonima is currently generating about 0.05 per unit of risk. If you would invest 66,306 in Binance Coin on October 21, 2024 and sell it today you would earn a total of 5,763 from holding Binance Coin or generate 8.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 90.48% |
| Values | Daily Returns |
Binance Coin vs. YPF Sociedad Anonima
Performance |
| Timeline |
| Binance Coin |
| YPF Sociedad Anonima |
Binance Coin and YPF Sociedad Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and YPF Sociedad
The main advantage of trading using opposite Binance Coin and YPF Sociedad positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, YPF Sociedad 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 YPF Sociedad will offset losses from the drop in YPF Sociedad's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
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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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