Is BNB correlated to other assets?
The average correlation ratio amongst cryptocurrencies stood at 0.72, a high value indicating a strong relationship between the returns of cryptoassets.Amongst ten of the largest marketcap cryptoasset, BNB was the least correlated asset displaying an average correlation of only 0.58.BNB displayed a medium positive correlation with other large cryptoassets: only 0.57 with BTC, 0.52 with XRP, 0.64 with LTC, and 0.63 with ETH. In comparison, BTC and ETH, the two largest cryptoassets, displayed a strong positive correlation(0.82).
Correlations with traditional financial assets
BNB appears to be a unique asset: not only is it uncorrelated with traditional financial assets, but it is also one of the lowest correlated assets with other cryptocurrencies.Hence, the next subsection focuses on the construction of model portfolios, including Bitcoin (BTC) and BNB, along with the backtesting of the performance of these portfolios.
The average correlation ratio amongst cryptocurrencies stood at 0.72, a high value indicating a strong relationship between the returns of cryptoassets.Amongst ten of the largest marketcap cryptoasset, BNB was the least correlated asset displaying an average correlation of only 0.58.BNB displayed a medium positive correlation with other large cryptoassets: only 0.57 with BTC, 0.52 with XRP, 0.64 with LTC, and 0.63 with ETH. In comparison, BTC and ETH, the two largest cryptoassets, displayed a strong positive correlation(0.82).
Correlations with traditional financial assets
BNB appears to be a unique asset: not only is it uncorrelated with traditional financial assets, but it is also one of the lowest correlated assets with other cryptocurrencies.Hence, the next subsection focuses on the construction of model portfolios, including Bitcoin (BTC) and BNB, along with the backtesting of the performance of these portfolios.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.