This module allows you to analyze existing cross correlation between Bitstamp Bitcoin USD and itBit Bitcoin USD. You can compare the effects of market volatilities on Bitstamp Bitcoin and itBit 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 itBit Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Bitcoin
and itBit Bitcoin
Bitstamp Bitcoin USD vs itBit Bitcoin USD
Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to generate 0.82 times more return on investment than itBit Bitcoin. However, Bitstamp Bitcoin USD is 1.22 times less risky than itBit Bitcoin. It trades about 0.45 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about 0.36 per unit of risk. If you would invest 635,513 in Bitstamp Bitcoin USD on November 10, 2017 and sell it today you would earn a total of 874,488 from holding Bitstamp Bitcoin USD or generate 137.6% return on investment 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 Bitstamp Bitcoin USD and itBit Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on itBit 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 itBit Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of itBit Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and itBit Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in itBit Bitcoin USD are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.