Correlation Between Binance Coin and Solstad Offsho
Can any of the company-specific risk be diversified away by investing in both Binance Coin and Solstad Offsho 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 Solstad Offsho into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Binance Coin and Solstad Offsho, you can compare the effects of market volatilities on Binance Coin and Solstad Offsho 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 Solstad Offsho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Binance Coin and Solstad Offsho.
Diversification Opportunities for Binance Coin and Solstad Offsho
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Binance and Solstad is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and Solstad Offsho in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Solstad Offsho 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 Solstad Offsho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Solstad Offsho has no effect on the direction of Binance Coin i.e., Binance Coin and Solstad Offsho go up and down completely randomly.
Pair Corralation between Binance Coin and Solstad Offsho
Assuming the 90 days trading horizon Binance Coin is expected to generate 1.18 times less return on investment than Solstad Offsho. In addition to that, Binance Coin is 1.16 times more volatile than Solstad Offsho. It trades about 0.22 of its total potential returns per unit of risk. Solstad Offsho is currently generating about 0.3 per unit of volatility. If you would invest 4,095 in Solstad Offsho on June 5, 2025 and sell it today you would earn a total of 1,615 from holding Solstad Offsho or generate 39.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.44% |
| Values | Daily Returns |
Binance Coin vs. Solstad Offsho
Performance |
| Timeline |
| Binance Coin |
| Solstad Offsho |
Binance Coin and Solstad Offsho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Binance Coin and Solstad Offsho
The main advantage of trading using opposite Binance Coin and Solstad Offsho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Binance Coin position performs unexpectedly, Solstad Offsho 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 Solstad Offsho will offset losses from the drop in Solstad Offsho'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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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