This module allows you to analyze existing cross correlation between BitTrex Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on BitTrex Bitcoin and Bitstamp 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 Bitstamp Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitTrex Bitcoin
and Bitstamp Bitcoin
BitTrex Bitcoin USD vs Bitstamp Bitcoin USD
Assuming 30 trading days horizon, BitTrex Bitcoin is expected to generate 1.02 times less return on investment than Bitstamp Bitcoin. But when comparing it to its historical volatility, BitTrex Bitcoin USD is 1.17 times less risky than Bitstamp Bitcoin. It trades about 0.5 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest 781,770 in Bitstamp Bitcoin USD on November 17, 2017 and sell it today you would earn a total of 1,115,230 from holding Bitstamp Bitcoin USD or generate 142.65% 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 BitTrex Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp 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 Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and Bitstamp Bitcoin go up and down completely randomly.
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.
Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Bitcoin USD are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.