Pair Correlation Between BitTrex Bitcoin and Bitfinex Bitcoin

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

BitTrex

Bitcoin on BitTrex in USD
 17,602 
1,252  7.66%
Market Cap: 2122.8 B
(239)

Bitfinex

Bitcoin on Bitfinex in USD
 17,841 
1,423  8.67%
Market Cap: 11621.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitTrex Bitcoin USD is expected to generate 0.86 times more return on investment than Bitfinex Bitcoin. However, BitTrex Bitcoin USD is 1.17 times less risky than Bitfinex Bitcoin. It trades about 0.47 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.4 per unit of risk. If you would invest  782,000  in BitTrex Bitcoin USD on November 15, 2017 and sell it today you would earn a total of  930,000  from holding BitTrex Bitcoin USD or generate 118.93% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BitTrex Bitcoin and Bitfinex Bitcoin
0.99

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex 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 Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

BitTrex Bitcoin USD

  
30 

Risk-Adjusted Performance

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

BitTrex Bitcoin USD

Pair trading matchups for BitTrex Bitcoin

Bitfinex Bitcoin USD

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.