Pair Correlation Between BitBay Bitcoin and LocalBitcoins Bitcoin

This module allows you to analyze existing cross correlation between BitBay Bitcoin USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on BitBay Bitcoin and LocalBitcoins Bitcoin 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 BitBay Bitcoin with a short position of LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of BitBay Bitcoin and LocalBitcoins Bitcoin.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 BitBay Bitcoin USD  vs   LocalBitcoins Bitcoin USD

BitBay

Bitcoin on BitBay in USD
 16,230 
1,730  11.93%
Market Cap: 166.6 M
(9,856)
60.73% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 26,086 
(906.69)  3.36%
Market Cap: 35.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitBay Bitcoin is expected to generate 1.45 times less return on investment than LocalBitcoins Bitcoin. But when comparing it to its historical volatility, BitBay Bitcoin USD is 1.84 times less risky than LocalBitcoins Bitcoin. It trades about 0.24 of its potential returns per unit of risk. LocalBitcoins Bitcoin USD is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest  1,853,988  in LocalBitcoins Bitcoin USD on November 11, 2017 and sell it today you would earn a total of  737,518  from holding LocalBitcoins Bitcoin USD or generate 39.78% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BitBay Bitcoin and LocalBitcoins Bitcoin
0.68

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy96.77%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding BitBay Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins Bitcoin USD and BitBay Bitcoin 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 BitBay Bitcoin USD are associated (or correlated) with LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of BitBay Bitcoin i.e. BitBay Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

BitBay Bitcoin USD

  
15 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitBay Bitcoin USD are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.

LocalBitcoins Bitcoin USD

  
12 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.