This module allows you to analyze existing cross correlation between Cexio Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on Cexio 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 Cexio Bitcoin with a short position of Kraken Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Cexio Bitcoin and Kraken Bitcoin.
Assuming 30 trading days horizon, Cexio Bitcoin USD is expected to generate 0.86 times more return on investment than Kraken Bitcoin. However, Cexio Bitcoin USD is 1.16 times less risky than Kraken Bitcoin. It trades about -0.15 of its potential returns per unit of risk. Kraken Bitcoin USD is currently generating about -0.13 per unit of risk. If you would invest 738,000 in Cexio Bitcoin USD on July 20, 2018 and sell it today you would lose (99,400) from holding Cexio Bitcoin USD or give up 13.47% of portfolio value over 30 days.
Pair Corralation between Cexio Bitcoin and Kraken Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Cexio 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 Cexio 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 Cexio 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 Cexio Bitcoin i.e. Cexio Bitcoin and Kraken Bitcoin go up and down completely randomly.
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