Pair Correlation Between Bitfinex Bitcoin and BitBay Bitcoin

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

Bitfinex

Bitcoin on Bitfinex in USD
 16,296 
1,798  12.4%
Market Cap: 38.7 B
 425 

BitBay

Bitcoin on BitBay in USD
 15,871 
1,371  9.46%
Market Cap: 166.6 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin is expected to generate 1.61 times less return on investment than BitBay Bitcoin. But when comparing it to its historical volatility, Bitfinex Bitcoin USD is 3.73 times less risky than BitBay Bitcoin. It trades about 0.55 of its potential returns per unit of risk. BitBay Bitcoin USD is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  459,900  in BitBay Bitcoin USD on November 11, 2017 and sell it today you would earn a total of  1,127,200  from holding BitBay Bitcoin USD or generate 245.1% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Bitcoin and BitBay Bitcoin
0.93

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Bitcoin USD

  
36 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 36 (%) of all global equities and portfolios over the last 30 days.

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.