Pair Correlation Between Bitstamp Ethereum and Lykke Ethereum

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

Bitstamp

Ethereum on Bitstamp in USD
 935.85 
26.72  2.78%
Market Cap: 32.9 B
(37.66)

Lykke

Ethereum on Lykke in USD
 973.51 
5.49  0.56%
Market Cap: 19.2 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the Lykke Ethereum. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 1.15 times less risky than Lykke Ethereum. The crypto trades about -0.05 of its potential returns per unit of risk. The Lykke Ethereum USD is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest  122,570  in Lykke Ethereum USD on January 19, 2018 and sell it today you would lose (25,219)  from holding Lykke Ethereum USD or give up 20.58% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Ethereum and Lykke Ethereum
0.94

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitstamp Ethereum USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Lykke Ethereum USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Lykke Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.