Pair Correlation Between BitTrex Bitcoin and Kraken Bitcoin

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

BitTrex

Bitcoin on BitTrex in USD
 18,420 
(380)  2.02%
Market Cap: 1598.7 B
(570)

Kraken

Bitcoin on Kraken in USD
 18,990 
(194.4)  1.01%
Market Cap: 286.6 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitTrex Bitcoin is expected to generate 1.07 times less return on investment than Kraken Bitcoin. But when comparing it to its historical volatility, BitTrex Bitcoin USD is 1.13 times less risky than Kraken Bitcoin. It trades about 0.48 of its potential returns per unit of risk. Kraken Bitcoin USD is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest  776,280  in Kraken Bitcoin USD on November 18, 2017 and sell it today you would earn a total of  1,107,110  from holding Kraken Bitcoin USD or generate 142.62% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between BitTrex Bitcoin and Kraken Bitcoin
0.98

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

Comparative Volatility

 Predicted Return Density 
      Returns 

BitTrex Bitcoin USD

  
31 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Bitcoin USD are ranked lower than 31 (%) of all global equities and portfolios over the last 30 days.

Kraken Bitcoin USD

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.