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

Bitfinex

Ethereum on Bitfinex in USD
 922.88 
35.10  3.66%
Market Cap: 157.8 B
(7.93)

Coinbase

Ethereum on Coinbase in USD
 930.81 
26.19  2.74%
Market Cap: 116.5 B
 Performance (%) 
      Timeline 

Pair Volatility

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.

Correlation Coefficient

Pair Corralation between Bitfinex Ethereum and Coinbase Ethereum
0.99

Parameters

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

Diversification

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.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Ethereum USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Bitfinex Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Ethereum USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.