This module allows you to analyze existing cross correlation between Bitfinex Recovery Right Tokens USD and HitBTC NEM USD. You can compare the effects of market volatilities on Bitfinex Recovery and HitBTC NEM 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 HitBTC NEM. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitfinex Recovery
and HitBTC NEM
Bitfinex Recovery Right Tokens vs HitBTC NEM USD
Assuming 30 trading days horizon, Bitfinex Recovery Right Tokens USD is expected to generate 1.26 times more return on investment than HitBTC NEM. However, Bitfinex Recovery is 1.26 times more volatile than HitBTC NEM USD. It trades about -0.02 of its potential returns per unit of risk. HitBTC NEM USD is currently generating about -0.15 per unit of risk. If you would invest 6.13 in Bitfinex Recovery Right Tokens USD on February 20, 2018 and sell it today you would lose (0.94) from holding Bitfinex Recovery Right Tokens USD or give up 15.37% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Recovery Right Tokens and HitBTC NEM USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC NEM 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 HitBTC NEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC NEM USD has no effect on the direction of Bitfinex Recovery i.e. Bitfinex Recovery and HitBTC NEM go up and down completely randomly.
Over the last 30 days Bitfinex Recovery Right Tokens USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC NEM USD has generated negative risk-adjusted returns adding no value to investors with long positions.