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
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.
Bitfinex Bitcoin and Exmo Bitcoin Volatility Contrast
Bitfinex Bitcoin USD vs. Exmo Bitcoin USD
Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to under-perform the Exmo Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitfinex Bitcoin USD is 1.06 times less risky than Exmo Bitcoin. The crypto trades about -0.34 of its potential returns per unit of risk. The Exmo Bitcoin USD is currently generating about -0.31 of returns per unit of risk over similar time horizon. If you would invest 668,000 in Exmo Bitcoin USD on November 14, 2018 and sell it today you would lose (327,410) from holding Exmo Bitcoin USD or give up 49.01% of portfolio value over 30 days.
Pair Corralation between Bitfinex Bitcoin and Exmo Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Bitfinex Bitcoin and Exmo Bitcoin
No risk reduction
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.