Pair Correlation Between Bitfinex Bitcoin and Bitstamp Bitcoin

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

Bitfinex

Bitcoin on Bitfinex in USD
 11,139 
390.00  3.63%
Market Cap: 2643.8 B
 210.12 

Bitstamp

Bitcoin on Bitstamp in USD
 10,929 
125.70  1.16%
Market Cap: 936.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin is expected to generate 1.74 times less return on investment than Bitstamp Bitcoin. But when comparing it to its historical volatility, Bitfinex Bitcoin USD is 1.15 times less risky than Bitstamp Bitcoin. It trades about 0.01 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest  1,137,860  in Bitstamp Bitcoin USD on January 20, 2018 and sell it today you would lose (42,970)  from holding Bitstamp Bitcoin USD or give up 3.78% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Bitcoin and Bitstamp Bitcoin
0.99

Parameters

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

Diversification

No risk reduction

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Bitstamp Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.