Pair Correlation Between Bitfinex Ethereum and Bitstamp Ethereum

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

Bitfinex

Ethereum on Bitfinex in USD
 612.2 
102.68  20.15%
Market Cap: 553.3 M
(25.74)

Bitstamp

Ethereum on Bitstamp in USD
 637.94 
139.98  28.11%
Market Cap: 746.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Ethereum USD is expected to generate 0.95 times more return on investment than Bitstamp Ethereum. However, Bitfinex Ethereum USD is 1.05 times less risky than Bitstamp Ethereum. It trades about 0.43 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about 0.4 per unit of risk. If you would invest  30,441  in Bitfinex Ethereum USD on November 12, 2017 and sell it today you would earn a total of  28,561  from holding Bitfinex Ethereum USD or generate 93.82% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Ethereum and Bitstamp Ethereum
0.66

Parameters

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

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Ethereum USD

  
28 

Risk-Adjusted Performance

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

Bitstamp Ethereum USD

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Ethereum USD are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.