Pair Correlation Between Bitstamp Ethereum and Poloniex Ethereum

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

Bitstamp

Ethereum on Bitstamp in USD
 887.51 
29.11  3.18%
Market Cap: 32.9 B
 0.32 
0.036056% Risk Free Arbitrage
All Coins Ethereum Arbitrage Ethereum Correlation

Poloniex

Ethereum on Poloniex in USD
 887.19 
28.81  3.15%
Market Cap: 7.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to generate 1.29 times more return on investment than Poloniex Ethereum. However, Bitstamp Ethereum is 1.29 times more volatile than Poloniex Ethereum USD. It trades about -0.01 of its potential returns per unit of risk. Poloniex Ethereum USD is currently generating about -0.02 per unit of risk. If you would invest  100,700  in Bitstamp Ethereum USD on January 22, 2018 and sell it today you would lose (11,900)  from holding Bitstamp Ethereum USD or give up 11.82% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Ethereum and Poloniex Ethereum
0.95

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

Poloniex Ethereum USD

  
0 

Risk-Adjusted Performance

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