This module allows you to analyze existing cross correlation between Bitfinex Ethereum USD and Coinbase Ethereum USD. You can compare the effects of market volatilities on Bitfinex Ethereum and Coinbase 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 Coinbase Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitfinex Ethereum
and Coinbase Ethereum
Bitfinex Ethereum USD vs Coinbase Ethereum USD
Assuming 30 trading days horizon, Bitfinex Ethereum USD is expected to generate 1.06 times more return on investment than Coinbase Ethereum. However, Bitfinex Ethereum is 1.06 times more volatile than Coinbase Ethereum USD. It trades about -0.06 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about -0.07 per unit of risk. If you would invest 115,210 in Bitfinex Ethereum USD on January 19, 2018 and sell it today you would lose (19,412) from holding Bitfinex Ethereum USD or give up 16.85% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Ethereum USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase 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 Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of Bitfinex Ethereum i.e. Bitfinex Ethereum and Coinbase Ethereum go up and down completely randomly.
Over the last 30 days Bitfinex Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Coinbase Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.