Correlation Between Binance Coin and MONA
Can any of the company-specific risk be diversified away by investing in both Binance Coin and MONA 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 MONA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and MONA, you can compare the effects of market volatilities on Binance Coin and MONA 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 MONA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and MONA.
Diversification Opportunities for Binance Coin and MONA
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Binance and MONA is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and MONA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MONA 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 MONA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MONA has no effect on the direction of Binance Coin i.e., Binance Coin and MONA go up and down completely randomly.
Pair Corralation between Binance Coin and MONA
Assuming the 90 days trading horizon Binance Coin is expected to generate 0.9 times more return on investment than MONA. However, Binance Coin is 1.11 times less risky than MONA. It trades about 0.02 of its potential returns per unit of risk. MONA is currently generating about -0.14 per unit of risk. If you would invest 55,400 in Binance Coin on January 21, 2024 and sell it today you would earn a total of 280.00 from holding Binance Coin or generate 0.51% 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. MONA
Performance |
Timeline |
Binance Coin |
MONA |
Binance Coin and MONA Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Binance Coin and MONA
The main advantage of trading using opposite Binance Coin and MONA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, MONA 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 MONA will offset losses from the drop in MONA's long position.Binance Coin vs. Staked Ether | Binance Coin vs. Cronos | Binance Coin vs. Wrapped Bitcoin | Binance Coin vs. Monero |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
Positions Ratings 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 | |
Fundamental Analysis View fundamental data based on most recent published financial statements | |
Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
FinTech Suite Use AI to screen and filter profitable investment opportunities |