Correlation Between Binance Coin and Status Network
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Status Network 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 Status Network into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Status Network Token, you can compare the effects of market volatilities on Binance Coin and Status Network 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 Status Network. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Status Network.
Diversification Opportunities for Binance Coin and Status Network
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binance and Status is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Status Network Token in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Status Network Token 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 Status Network. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Status Network Token has no effect on the direction of Binance Coin i.e., Binance Coin and Status Network go up and down completely randomly.
Pair Corralation between Binance Coin and Status Network
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.6 times more return on investment than Status Network. However, Binance Coin is 1.67 times less risky than Status Network. It trades about 0.05 of its potential returns per unit of risk. Status Network Token is currently generating about 0.02 per unit of risk. If you would invest 36,533 in Binance Coin on January 26, 2024 and sell it today you would earn a total of 24,087 from holding Binance Coin or generate 65.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Binance Coin vs. Status Network Token
Performance |
| Timeline |
| Binance Coin |
| Status Network Token |
Binance Coin and Status Network Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Status Network
The main advantage of trading using opposite Binance Coin and Status Network positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Status Network 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 Status Network will offset losses from the drop in Status Network's long position.| Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
| Status Network vs. Solana | Status Network vs. XRP | Status Network vs. Staked Ether | Status Network 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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