This module allows you to analyze existing cross correlation between BitTrex Ethereum Classic USD and Poloniex Stellar USD. You can compare the effects of market volatilities on BitTrex Ethereum and Poloniex Stellar 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 Poloniex Stellar. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitTrex Ethereum
and Poloniex Stellar
BitTrex Ethereum Classic USD vs Poloniex Stellar USD
Assuming 30 trading days horizon, BitTrex Ethereum Classic USD is expected to generate 1.13 times more return on investment than Poloniex Stellar. However, BitTrex Ethereum is 1.13 times more volatile than Poloniex Stellar USD. It trades about -0.19 of its potential returns per unit of risk. Poloniex Stellar USD is currently generating about -0.21 per unit of risk. If you would invest 3,406 in BitTrex Ethereum Classic USD on February 18, 2018 and sell it today you would lose (1,437) from holding BitTrex Ethereum Classic USD or give up 42.19% 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 Poloniex Stellar USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Stellar 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 Poloniex Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Stellar USD has no effect on the direction of BitTrex Ethereum i.e. BitTrex Ethereum and Poloniex Stellar 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 Poloniex Stellar USD has generated negative risk-adjusted returns adding no value to investors with long positions.