This module allows you to analyze existing cross correlation between BitBay Ethereum USD and BitTrex Ethereum USD. You can compare the effects of market volatilities on BitBay Ethereum and BitTrex Ethereum 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 Ethereum with a short position of BitTrex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitBay Ethereum
and BitTrex Ethereum
BitBay Ethereum USD vs BitTrex Ethereum USD
Assuming 30 trading days horizon, BitBay Ethereum USD is expected to generate 1.78 times more return on investment than BitTrex Ethereum. However, BitBay Ethereum is 1.78 times more volatile than BitTrex Ethereum USD. It trades about 0.29 of its potential returns per unit of risk. BitTrex Ethereum USD is currently generating about 0.39 per unit of risk. If you would invest 29,345 in BitBay Ethereum USD on November 14, 2017 and sell it today you would earn a total of 38,965 from holding BitBay Ethereum USD or generate 132.78% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitBay Ethereum USD and BitTrex Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Ethereum USD and BitBay Ethereum 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 Ethereum USD are associated (or correlated) with BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum USD has no effect on the direction of BitBay Ethereum i.e. BitBay Ethereum and BitTrex Ethereum go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in BitBay Ethereum USD are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Ethereum USD are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.