Pair Correlation Between Bitfinex Ethereum and Kraken Ethereum

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

Bitfinex

Ethereum on Bitfinex in USD
 723.37 
6.91  0.96%
Market Cap: 2.2 B
 13.37 

Kraken

Ethereum on Kraken in USD
 710 
1.35  0.19%
Market Cap: 5.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Ethereum is expected to generate 1.0 times less return on investment than Kraken Ethereum. But when comparing it to its historical volatility, Bitfinex Ethereum USD is 1.05 times less risky than Kraken Ethereum. It trades about 0.38 of its potential returns per unit of risk. Kraken Ethereum USD is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest  34,510  in Kraken Ethereum USD on November 17, 2017 and sell it today you would earn a total of  36,501  from holding Kraken Ethereum USD or generate 105.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Ethereum and Kraken 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 Kraken Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken 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 Kraken Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Ethereum USD has no effect on the direction of Bitfinex Ethereum i.e. Bitfinex Ethereum and Kraken Ethereum go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Ethereum USD

  
24 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Ethereum USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.

Kraken Ethereum USD

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Ethereum USD are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.