Pair Correlation Between Bitstamp Bitcoin and Quoine Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 17,458 
(122.46)  0.7%
Market Cap: 3049.2 B
(496.78)

Quoine

Bitcoin on Quoine in USD
 17,954 
(20.71)  0.12%
Market Cap: 193.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin is expected to generate 1.2 times less return on investment than Quoine Bitcoin. But when comparing it to its historical volatility, Bitstamp Bitcoin USD is 1.85 times less risky than Quoine Bitcoin. It trades about 0.4 of its potential returns per unit of risk. Quoine Bitcoin USD is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest  789,030  in Quoine Bitcoin USD on November 15, 2017 and sell it today you would earn a total of  998,439  from holding Quoine Bitcoin USD or generate 126.54% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and Quoine Bitcoin
0.92

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Diversification

Almost no diversification

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

Quoine Bitcoin USD

  
17 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Quoine Bitcoin USD are ranked lower than 17 (%) of all global equities and portfolios over the last 30 days.