This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on Coinbase Bitcoin and Bitfinex 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 Coinbase Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Bitcoin
and Bitfinex Bitcoin
Coinbase Bitcoin USD vs Bitfinex Bitcoin USD
Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 1.28 times more return on investment than Bitfinex Bitcoin. However, Coinbase Bitcoin is 1.28 times more volatile than Bitfinex Bitcoin USD. It trades about 0.42 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.5 per unit of risk. If you would invest 651,499 in Coinbase Bitcoin USD on November 12, 2017 and sell it today you would earn a total of 1,143,500 from holding Coinbase Bitcoin USD or generate 175.52% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Coinbase 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 Coinbase Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Bitfinex Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Bitcoin USD are ranked lower than 27 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.