Binance Coin Volatility

BNB
 Crypto
  

USD 327.97  12.66  4.02%   

Binance Coin appears to be extremely risky, given 3 months investment horizon. Binance Coin secures Sharpe Ratio (or Efficiency) of 0.088, which signifies that digital coin had 0.088% of return per unit of risk over the last 3 months. Our standpoint towards foreseeing the volatility of a crypto is to use all available market data together with crypto-specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Binance Coin, which you can use to evaluate the future volatility of coin. Please makes use of Binance Coin's Risk Adjusted Performance of 0.0516, mean deviation of 3.98, and Downside Deviation of 6.07 to double-check if our risk estimates are consistent with your expectations.
  
Binance Coin Crypto Coin volatility depicts how high the prices fluctuate around the mean (or its average) price. In other words, it is a statistical measure of the distribution of Binance daily returns, and it is calculated using variance and standard deviation. We also use Binance's beta, its sensitivity to the market, as well as its odds of financial distress to provide a more practical estimation of Binance Coin volatility.

60 Days Market Risk

Extremely risky

Chance of Distress

Below Average

60 Days Economic Sensitivity

Follows the market closely
Since volatility provides cryptocurrency investors with entry points to take advantage of coin prices, projects, such as Binance Coin can benefit from it. Downward market volatility can be a perfect environment for traders who play the long game. Here, they may decide to buy additional shares of Binance Coin at lower prices. For example, an investor can purchase Binance coin that has halved in price over a short period. This will lower your average cost per share, thereby improving your portfolio's performance when the markets normalize. Similarly, when the prices of Binance Coin's crypto rises, investors can sell out and invest the proceeds in other coins with better opportunities. Investing when markets are volatile with better valuations will accord both investors and defi or crypto projects the opportunity to generate better long-term returns.

Moving together with Binance Coin

0.72BAKEBakeryTokenPairCorr
0.77SFPSafePalPairCorr

Binance Coin Market Sensitivity And Downside Risk

Binance Coin's beta coefficient measures the volatility of Binance crypto coin compared to the systematic risk of the entire stock market represented by your selected benchmark. In mathematical terms, beta represents the slope of the line through a regression of data points where each of these points represents Binance crypto coin's returns against your selected market. In other words, Binance Coin's beta of 0.85 provides an investor with an approximation of how much risk Binance Coin crypto coin can potentially add to one of your existing portfolios.
Binance Coin exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Binance Coin individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Binance Coin future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Binance Coin's crypto coin risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Binance Coin's crypto coin price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Binance Coin Implied Volatility

Binance Coin's implied volatility exposes the market's sentiment of Binance Coin stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Binance Coin's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Binance Coin stock will not fluctuate a lot when Binance Coin's options are near their expiration.
3 Months Beta |Analyze Binance Coin Demand Trend
Check current 90 days Binance Coin correlation with market (DOW)

Binance Beta

    
  0.85  
Binance standard deviation measures the daily dispersion of prices over your selected time horizon relative to its mean. Typical volatile equity has a high standard deviation, while the deviation of a stable instrument is usually low. As a downside, the standard deviation calculates all uncertainty as risk, even when it is in your favor, such as above-average returns.

Standard Deviation

    
  5.07  
It is essential to understand the difference between upside risk (as represented by Binance Coin's standard deviation) and the downside risk, which can be measured by semi-deviation or downside deviation of Binance Coin stock's daily returns or price. Since the actual investment returns on holding a position in Binance Coin stock tend to have a non-normal distribution, there will be different probabilities for losses than for gains. The likelihood of losses is reflected in the downside risk of an investment in Binance Coin.

Binance Coin Crypto Coin Volatility Analysis

Volatility refers to the frequency at which Binance Coin stock price increases or decreases within a specified period. These fluctuations usually indicate the level of risk that's associated with Binance Coin's price changes. Investors will then calculate the volatility of Binance Coin's stock to predict their future moves. A stock that has erratic price changes quickly hits new highs, and lows are considered highly volatile. A stock with relatively stable price changes has low volatility. A highly volatile stock is riskier, but the risk cuts both ways. Investing in highly volatile security can either be highly successful, or you may experience significant failure. There are two main types of Binance Coin's volatility:

Historical Volatility

This type of stock volatility measures Binance Coin's fluctuations based on previous trends. It's commonly used to predict Binance Coin's future behavior based on its past. However, it cannot conclusively determine the future direction of the stock.

Implied Volatility

This type of volatility provides a positive outlook on future price fluctuations for Binance Coin's current market price. This means that the stock will return to its initially predicted market price.
Transformation
The output start index for this execution was zero with a total number of output elements of sixty-one. Binance Coin Typical Price indicator is an average of each day price and can be used instead of closing price when creating different Binance Coin moving average lines.
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Binance Coin Projected Return Density Against Market

Assuming the 90 days trading horizon Binance Coin has a beta of 0.8522 suggesting Binance Coin market returns are sensitive to returns on the market. As the market goes up or down, Binance Coin is expected to follow.
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Binance Coin or Blockchain sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Binance Coin stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Binance stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
The company has an alpha of 0.1883, implying that it can generate a 0.19 percent excess return over DOW after adjusting for the inherited market risk (beta).
   Predicted Return Density   
       Returns  
Binance Coin's volatility is measured either by using standard deviation or beta. Standard deviation will reflect the average amount of how Binance Coin stock's price will differ from the mean after some time.To get its calculation, you should first determine the mean price during the specified period then subtract that from each price point.

What Drives a Company's Stock Price Volatility?

Several factors can influence a company's stock volatility:

Industry

Specific events can influence volatility within a particular industry. For instance, a significant weather upheaval in a crucial oil-production site may cause oil prices to increase in the oil sector. The direct result will be the rise in the stock price of oil distribution companies. Similarly, any government regulation in a specific industry could negatively influence stock prices due to increased regulations on compliance that may impact the company's future earnings and growth.

Political and Economic environment

When governments make significant decisions regarding trade agreements, policies, and legislation regarding specific industries, they will influence stock prices. Everything from speeches to elections may influence investors, who can directly influence the stock prices in any particular industry. The prevailing economic situation also plays a significant role in stock prices. When the economy is doing well, investors will have a positive reaction and hence, better stock prices and vice versa.

The Company's Performance

Sometimes volatility will only affect an individual company. For example, a revolutionary product launch or strong earnings report may attract many investors to purchase the company. This positive attention will raise the company's stock price. In contrast, product recalls and data breaches may negatively influence a company's stock prices.

Binance Coin Crypto Coin Risk Measures

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Binance Coin or Blockchain sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Binance Coin stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Binance stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
Assuming the 90 days trading horizon the coefficient of variation of Binance Coin is 1136.91. The daily returns are distributed with a variance of 25.68 and standard deviation of 5.07. The mean deviation of Binance Coin is currently at 3.84. For similar time horizon, the selected benchmark (DOW) has volatility of 1.25
α
Alpha over DOW
0.19
β
Beta against DOW0.85
σ
Overall volatility
5.07
Ir
Information ratio 0.0356

Binance Coin Crypto Coin Return Volatility

Binance Coin historical daily return volatility represents how much Binance Coin stock's price daily returns swing around its mean daily price change - it is a statistical measure of its dispersion of returns. Binance Coin assumes 5.0676% volatility of returns over the 90 days investment horizon. By contrast, DOW inherits 1.2597% risk (volatility on return distribution) over the 90 days horizon.
 Performance (%) 
       Timeline  

About Binance Coin Volatility

Volatility is a rate at which the price of Binance Coin or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of Binance Coin may increase or decrease. In other words, similar to Binance's beta indicator, it measures the risk of Binance Coin and helps estimate the fluctuations that may happen in a short period of time. So if prices of Binance Coin fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility.
Please read more on our technical analysis page.
Binance Coin is peer-to-peer digital currency powered by the Blockchain technology. BNB powers the Binance ecosystem and is the native asset of the Binance Chain. BNB is a cryptocurrency created in June 2017, launched during an ICO in July, and initially issued as an ERC-20 token. Designed to be used for a fee reduction on the Binance exchange, its scope was extended over the years.BNB powers the Binance Chain as its native chain token. For instance, it is used to pay fees on the Binance DEX, issue new tokens, sendcancel orders, and transfer assets.BNB is also powering the Binance Smart Chain, which is an EVM-compatible network, forked from go-ethereum. It supports smart contracts and relies on a new consensus mechanism Proof-of-Staked Authority consensus , which incorporates elements from both Proof of Stake and Proof of Authority. BNB is used for delegated staking on the authority validator, leading to staking rewards for users and validators

Binance Coin Investment Opportunity

Binance Coin has a volatility of 5.07 and is 4.02 times more volatile than DOW. 43  of all equities and portfolios are less risky than Binance Coin. Compared to the overall equity markets, volatility of historical daily returns of Binance Coin is lower than 43 () of all global equities and portfolios over the last 90 days.
Use Binance Coin to enhance the returns of your portfolios. Benchmarks are essential to demonstrate the utility of optimization algorithms. The crypto coin experiences a very speculative upward sentiment. Check odds of Binance Coin to be traded at $409.96 in 90 days. .

Modest diversification

The correlation between Binance Coin and DJI is Modest diversification for selected investment horizon. Overlapping area represents the amount of risk that can be diversified away by holding Binance Coin and DJI in the same portfolio, assuming nothing else is changed.
Please note that Binance Coin is a digital instrument and cryptocurrency exchanges were notoriously volatile since the beginning of their establishment.

Binance Coin Additional Risk Indicators

The analysis of Binance Coin's secondary risk indicators is one of the essential steps in making a buy or sell decision. The process involves identifying the amount of risk involved in Binance Coin's investment and either accepting that risk or mitigating it. Along with some common measures of Binance Coin stock risk such as standard deviation, beta, or value at risk, we also provide a set of secondary indicators that can assist in the individual investment decision or help in hedging the risk of your existing portfolios.
Risk Adjusted Performance0.0516
Market Risk Adjusted Performance0.2184
Mean Deviation3.98
Semi Deviation5.76
Downside Deviation6.07
Coefficient Of Variation2850.99
Standard Deviation5.35
Please note, the risk measures we provide can be used independently or collectively to perform a risk assessment. When comparing two potential stock investments, we recommend comparing similar equities with homogenous growth potential and valuation from related markets to determine which investment holds the most risk.

Binance Coin Suggested Diversification Pairs

Pair trading is one of the very effective strategies used by professional day traders and hedge funds capitalizing on short-time and mid-term market inefficiencies. The approach is based on the fact that the ratio of prices of two correlating shares is long-term stable and oscillates around the average value. If the correlation ratio comes outside the common area, you can speculate with a high success rate that the ratio will return to the mean value and collect a profit.
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The effect of pair diversification on risk is to reduce it, but we should note this doesn't apply to all risk types. When we trade pairs against Binance Coin as a counterpart, there is always some inherent risk that will never be diversified away no matter what. This volatility limits the effect of tactical diversification using pair trading. Binance Coin's systematic risk is the inherent uncertainty of the entire market, and therefore cannot be mitigated even by pair-trading it against the equity that is not highly correlated to it. On the other hand, Binance Coin's unsystematic risk describes the types of risk that we can protect against, at least to some degree, by selecting a matching pair that is not perfectly correlated to Binance Coin.
Continue to Trending Equities. Note that the Binance Coin information on this page should be used as a complementary analysis to other Binance Coin's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Other Tools for Binance Crypto Coin

When running Binance Coin price analysis, check to measure Binance Coin's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Binance Coin is operating at the current time. Most of Binance Coin's value examination focuses on studying past and present price action to predict the probability of Binance Coin's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Binance Coin's price. Additionally, you may evaluate how the addition of Binance Coin to your portfolios can decrease your overall portfolio volatility.
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