This module allows you to analyze existing cross correlation between Bitfinex Ethereum USD and Quoine Ethereum USD. You can compare the effects of market volatilities on Bitfinex Ethereum and Quoine 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 Quoine Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitfinex Ethereum
and Quoine Ethereum
Bitfinex Ethereum USD vs Quoine Ethereum USD
Assuming 30 trading days horizon, Bitfinex Ethereum USD is expected to generate 0.88 times more return on investment than Quoine Ethereum. However, Bitfinex Ethereum USD is 1.14 times less risky than Quoine Ethereum. It trades about -0.4 of its potential returns per unit of risk. Quoine Ethereum USD is currently generating about -0.35 per unit of risk. If you would invest 93,475 in Bitfinex Ethereum USD on February 18, 2018 and sell it today you would lose (39,475) from holding Bitfinex Ethereum USD or give up 42.23% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Ethereum USD and Quoine Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Quoine 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 Quoine Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoine Ethereum USD has no effect on the direction of Bitfinex Ethereum i.e. Bitfinex Ethereum and Quoine 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 Quoine Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.