This module allows you to analyze existing cross correlation between Bitfinex Bitcoin USD and Exmo Bitcoin USD. You can compare the effects of market volatilities on Bitfinex Bitcoin and Exmo 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 Exmo Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitfinex Bitcoin
and Exmo Bitcoin
Bitfinex Bitcoin USD vs Exmo Bitcoin USD
Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to generate 1.01 times more return on investment than Exmo Bitcoin. However, Bitfinex Bitcoin is 1.01 times more volatile than Exmo Bitcoin USD. It trades about -0.04 of its potential returns per unit of risk. Exmo Bitcoin USD is currently generating about -0.05 per unit of risk. If you would invest 1,088,300 in Bitfinex Bitcoin USD on January 25, 2018 and sell it today you would lose (127,100) from holding Bitfinex Bitcoin USD or give up 11.68% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Bitcoin USD and Exmo Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exmo 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 Exmo Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmo Bitcoin USD has no effect on the direction of Bitfinex Bitcoin i.e. Bitfinex Bitcoin and Exmo Bitcoin go up and down completely randomly.
Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Exmo Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.