Pair Correlation Between Bitfinex Bitcoin and Kraken Bitcoin

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

Bitfinex

Bitcoin on Bitfinex in USD
 16,254 
(999)  5.79%
Market Cap: 11621.2 B
(336)

Kraken

Bitcoin on Kraken in USD
 16,590 
(318.1)  1.88%
Market Cap: 771.3 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin is expected to generate 1.09 times less return on investment than Kraken Bitcoin. In addition to that, Bitfinex Bitcoin is 1.03 times more volatile than Kraken Bitcoin USD. It trades about 0.44 of its total potential returns per unit of risk. Kraken Bitcoin USD is currently generating about 0.49 per unit of volatility. If you would invest  655,000  in Kraken Bitcoin USD on November 13, 2017 and sell it today you would earn a total of  1,036,300  from holding Kraken Bitcoin USD or generate 158.21% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Bitcoin and Kraken Bitcoin
0.95

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Bitcoin USD

  
28 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.

Bitfinex Bitcoin USD

Pair trading matchups for Bitfinex Bitcoin

Kraken Bitcoin USD

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Bitcoin USD are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.

Kraken Bitcoin USD

Pair trading matchups for Kraken Bitcoin