Pair Correlation Between Bitfinex Bitcoin and Gemini Bitcoin

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

Bitfinex

Bitcoin on Bitfinex in USD
 19,655 
545  2.85%
Market Cap: 11621.2 B
(46.5)

Gemini

Bitcoin on Gemini in USD
 19,702 
401.49  2.08%
Market Cap: 2630.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin is expected to generate 1.03 times less return on investment than Gemini Bitcoin. In addition to that, Bitfinex Bitcoin is 1.07 times more volatile than Gemini Bitcoin USD. It trades about 0.46 of its total potential returns per unit of risk. Gemini Bitcoin USD is currently generating about 0.51 per unit of volatility. If you would invest  764,000  in Gemini Bitcoin USD on November 17, 2017 and sell it today you would earn a total of  1,166,001  from holding Gemini Bitcoin USD or generate 152.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Bitcoin and Gemini Bitcoin
0.97

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 Gemini Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gemini 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 Gemini Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Bitcoin USD has no effect on the direction of Bitfinex Bitcoin i.e. Bitfinex Bitcoin and Gemini Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Bitcoin USD

  
30 

Risk-Adjusted Performance

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

Gemini Bitcoin USD

  
33 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gemini Bitcoin USD are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.