Correlation Between Binance Coin and ZB
Can any of the company-specific risk be diversified away by investing in both Binance Coin and ZB 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 ZB into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and ZB, you can compare the effects of market volatilities on Binance Coin and ZB 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 ZB. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and ZB.
Diversification Opportunities for Binance Coin and ZB
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Binance and ZB is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and ZB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZB 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 ZB. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZB has no effect on the direction of Binance Coin i.e., Binance Coin and ZB go up and down completely randomly.
Pair Corralation between Binance Coin and ZB
If you would invest 55,368 in Binance Coin on January 20, 2024 and sell it today you would lose (358.00) from holding Binance Coin or give up 0.65% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.35% |
| Values | Daily Returns |
Binance Coin vs. ZB
Performance |
| Timeline |
| Binance Coin |
| ZB |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Binance Coin and ZB Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and ZB
The main advantage of trading using opposite Binance Coin and ZB positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, ZB 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 ZB will offset losses from the drop in ZB'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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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