Pair Correlation Between BitTrex Bitcoin and BitBay Bitcoin

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

BitTrex

Bitcoin on BitTrex in USD
 15,945 
(555.2)  3.36%
Market Cap: 2122.8 B
(745)

BitBay

Bitcoin on BitBay in USD
 16,690 
(120.1)  0.71%
Market Cap: 3.5 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitTrex Bitcoin is expected to generate 2.0 times less return on investment than BitBay Bitcoin. But when comparing it to its historical volatility, BitTrex Bitcoin USD is 4.09 times less risky than BitBay Bitcoin. It trades about 0.5 of its potential returns per unit of risk. BitBay Bitcoin USD is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest  459,900  in BitBay Bitcoin USD on November 13, 2017 and sell it today you would earn a total of  1,209,095  from holding BitBay Bitcoin USD or generate 262.9% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BitTrex Bitcoin and BitBay Bitcoin
0.94

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

Comparative Volatility

 Predicted Return Density 
      Returns 

BitTrex Bitcoin USD

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Bitcoin USD are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.

BitTrex Bitcoin USD

Pair trading matchups for BitTrex Bitcoin

BitBay Bitcoin USD

  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitBay Bitcoin USD are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

BitBay Bitcoin USD

Pair trading matchups for BitBay Bitcoin