Pair Correlation Between Bitfinex Ethereum and Coinbase Ethereum

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.
Investment Horizon     30 Days    Login   to change
Symbolsvs
 Bitfinex Ethereum USD  vs   Coinbase Ethereum USD

Bitfinex

Ethereum on Bitfinex in USD
 734.48 
15.23  2.12%
Market Cap: 2.2 B
 35.5 

Coinbase

Ethereum on Coinbase in USD
 698.98 
12.16  1.77%
Market Cap: 38.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Ethereum is expected to generate 1.02 times less return on investment than Coinbase Ethereum. But when comparing it to its historical volatility, Bitfinex Ethereum USD is 1.33 times less risky than Coinbase Ethereum. It trades about 0.42 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  32,931  in Coinbase Ethereum USD on November 14, 2017 and sell it today you would earn a total of  36,967  from holding Coinbase Ethereum USD or generate 112.26% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Ethereum and Coinbase Ethereum
0.94

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 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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Ethereum USD

  
27 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Ethereum USD are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.

Coinbase Ethereum USD

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.