This module allows you to analyze existing cross correlation between BitTrex Bitcoin USD and QuadrigaCX Bitcoin USD. You can compare the effects of market volatilities on BitTrex Bitcoin and QuadrigaCX 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 QuadrigaCX Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitTrex Bitcoin
and QuadrigaCX Bitcoin
Over the last 30 days BitTrex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days QuadrigaCX Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
BitTrex Bitcoin and QuadrigaCX Bitcoin Volatility Contrast
BitTrex Bitcoin USD vs. QuadrigaCX Bitcoin USD
Assuming 30 trading days horizon, BitTrex Bitcoin USD is expected to under-perform the QuadrigaCX Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, BitTrex Bitcoin USD is 1.42 times less risky than QuadrigaCX Bitcoin. The crypto trades about -0.37 of its potential returns per unit of risk. The QuadrigaCX Bitcoin USD is currently generating about -0.23 of returns per unit of risk over similar time horizon. If you would invest 680,117 in QuadrigaCX Bitcoin USD on November 14, 2018 and sell it today you would lose (300,618) from holding QuadrigaCX Bitcoin USD or give up 44.2% of portfolio value over 30 days.
Pair Corralation between BitTrex Bitcoin and QuadrigaCX Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for BitTrex Bitcoin and QuadrigaCX Bitcoin
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Bitcoin USD and QuadrigaCX Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on QuadrigaCX 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 QuadrigaCX Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of QuadrigaCX Bitcoin USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and QuadrigaCX Bitcoin go up and down completely randomly.