Pair Correlation Between Bitstamp Bitcoin and TheRockTrading Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 15,028 
1,661  12.43%
Market Cap: 3049.2 B
(761.85)

TheRockTrading

Bitcoin on TheRockTrading in USD
 15,790 
2,290  16.96%
Market Cap: 144.4 K
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin is expected to generate 1.07 times less return on investment than TheRockTrading Bitcoin. But when comparing it to its historical volatility, Bitstamp Bitcoin USD is 1.17 times less risky than TheRockTrading Bitcoin. It trades about 0.45 of its potential returns per unit of risk. TheRockTrading Bitcoin USD is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  637,296  in TheRockTrading Bitcoin USD on November 10, 2017 and sell it today you would earn a total of  941,704  from holding TheRockTrading Bitcoin USD or generate 147.77% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and TheRockTrading Bitcoin
0.97

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 TheRockTrading Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on TheRockTrading Bitcoin 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 TheRockTrading Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TheRockTrading Bitcoin has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and TheRockTrading Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitstamp Bitcoin USD

  
29 

Risk-Adjusted Performance

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.

TheRockTrading Bitcoin

  
27 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in TheRockTrading Bitcoin USD are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.