Pair Correlation Between Bitfinex Recovery and Coinbase Bitcoin

This module allows you to analyze existing cross correlation between Bitfinex Recovery Right Tokens USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on Bitfinex Recovery and Coinbase Bitcoin 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 Recovery with a short position of Coinbase Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Bitfinex Recovery and Coinbase Bitcoin.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Bitfinex Recovery Right Tokens  vs   Coinbase Bitcoin USD

Bitfinex

Recovery Right Tokens on Bitfinex in USD
 0.16 
0.013  8.92%
Market Cap: 112.3 K

Coinbase

Bitcoin on Coinbase in USD
 11,200 
855.19  8.27%
Market Cap: 1973.9 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Recovery Right Tokens USD is expected to under-perform the Coinbase Bitcoin. In addition to that, Bitfinex Recovery is 1.6 times more volatile than Coinbase Bitcoin USD. It trades about -0.04 of its total potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.05 per unit of volatility. If you would invest  1,408,999  in Coinbase Bitcoin USD on December 24, 2017 and sell it today you would lose (291,131)  from holding Coinbase Bitcoin USD or give up 20.66% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Recovery and Coinbase Bitcoin
0.87

Parameters

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

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Recovery Right Tokens and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Bitcoin USD and Bitfinex Recovery 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 Recovery Right Tokens USD are associated (or correlated) with Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of Bitfinex Recovery i.e. Bitfinex Recovery and Coinbase Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitfinex Recovery Right

  
0 

Risk-Adjusted Performance

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

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

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