This module allows you to analyze existing cross correlation between BitBay Ethereum USD and Exmo Ethereum USD. You can compare the effects of market volatilities on BitBay Ethereum and Exmo 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 Exmo Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitBay Ethereum
and Exmo Ethereum
Over the last 30 days BitBay Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Exmo Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
BitBay Ethereum and Exmo Ethereum Volatility Contrast
BitBay Ethereum USD vs. Exmo Ethereum USD
Assuming 30 trading days horizon, BitBay Ethereum USD is expected to under-perform the Exmo Ethereum. In addition to that, BitBay Ethereum is 1.3 times more volatile than Exmo Ethereum USD. It trades about -0.25 of its total potential returns per unit of risk. Exmo Ethereum USD is currently generating about -0.26 per unit of volatility. If you would invest 20,661 in Exmo Ethereum USD on November 19, 2018 and sell it today you would lose (10,497) from holding Exmo Ethereum USD or give up 50.81% of portfolio value over 30 days.
Pair Corralation between BitBay Ethereum and Exmo Ethereum
|Time Period||2 Months [change]|
Diversification Opportunities for BitBay Ethereum and Exmo Ethereum
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitBay Ethereum USD and Exmo Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exmo 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 Exmo Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmo Ethereum USD has no effect on the direction of BitBay Ethereum i.e. BitBay Ethereum and Exmo Ethereum go up and down completely randomly.