This module allows you to analyze existing cross correlation between BitTrex Ethereum Classic USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on BitTrex Ethereum and Coinbase 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 Ethereum with a short position of Coinbase Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitTrex Ethereum
and Coinbase Bitcoin
BitTrex Ethereum Classic USD vs Coinbase Bitcoin USD
Assuming 30 trading days horizon, BitTrex Ethereum Classic USD is expected to under-perform the Coinbase Bitcoin. In addition to that, BitTrex Ethereum is 1.48 times more volatile than Coinbase Bitcoin USD. It trades about -0.19 of its total potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.1 per unit of volatility. If you would invest 1,109,572 in Coinbase Bitcoin USD on February 18, 2018 and sell it today you would lose (215,971) from holding Coinbase Bitcoin USD or give up 19.46% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Ethereum Classic USD and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Bitcoin USD and BitTrex Ethereum 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 Ethereum Classic USD are associated (or correlated) with Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of BitTrex Ethereum i.e. BitTrex Ethereum and Coinbase Bitcoin go up and down completely randomly.
Over the last 30 days BitTrex Ethereum Classic USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.