Correlation Between Binance Coin and Hedera Hashgraph
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Hedera Hashgraph 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 Hedera Hashgraph into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Hedera Hashgraph, you can compare the effects of market volatilities on Binance Coin and Hedera Hashgraph 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 Hedera Hashgraph. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Hedera Hashgraph.
Diversification Opportunities for Binance Coin and Hedera Hashgraph
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binance and Hedera is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Hedera Hashgraph in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hedera Hashgraph 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 Hedera Hashgraph. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hedera Hashgraph has no effect on the direction of Binance Coin i.e., Binance Coin and Hedera Hashgraph go up and down completely randomly.
Pair Corralation between Binance Coin and Hedera Hashgraph
Assuming the 90 days trading horizon Binance Coin is expected to generate 2.38 times less return on investment than Hedera Hashgraph. But when comparing it to its historical volatility, Binance Coin is 6.1 times less risky than Hedera Hashgraph. It trades about 0.06 of its potential returns per unit of risk. Hedera Hashgraph is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 12.00 in Hedera Hashgraph on January 25, 2024 and sell it today you would lose (3.19) from holding Hedera Hashgraph or give up 26.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Hedera Hashgraph
Performance |
| Timeline |
| Binance Coin |
| Hedera Hashgraph |
Binance Coin and Hedera Hashgraph Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Hedera Hashgraph
The main advantage of trading using opposite Binance Coin and Hedera Hashgraph positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Hedera Hashgraph 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 Hedera Hashgraph will offset losses from the drop in Hedera Hashgraph's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Hedera Hashgraph vs. Ethereum | Hedera Hashgraph vs. Solana | Hedera Hashgraph vs. XRP | Hedera Hashgraph vs. The Open Network |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |