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
Bitstamp Bitcoin USD vs TheRockTrading Bitcoin USD
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.
|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 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.
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 TheRockTrading Bitcoin USD are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.