Pair Correlation Between Bitstamp Bitcoin and Gemini Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 17,600 
1,200  7.32%
Market Cap: 3049.2 B
(160)

Gemini

Bitcoin on Gemini in USD
 17,760 
1,146  6.9%
Market Cap: 2630.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin is expected to generate 1.0 times less return on investment than Gemini Bitcoin. In addition to that, Bitstamp Bitcoin is 1.09 times more volatile than Gemini Bitcoin USD. It trades about 0.41 of its total potential returns per unit of risk. Gemini Bitcoin USD is currently generating about 0.45 per unit of volatility. If you would invest  784,284  in Gemini Bitcoin USD on November 15, 2017 and sell it today you would earn a total of  985,715  from holding Gemini Bitcoin USD or generate 125.68% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and Gemini Bitcoin
0.98

Parameters

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

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitstamp Bitcoin USD

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Bitcoin USD are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.

Gemini Bitcoin USD

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gemini Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.