Pair Correlation Between Coinbase Bitcoin and BitTrex Ethereum

This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and BitTrex Ethereum Classic USD. You can compare the effects of market volatilities on Coinbase Bitcoin and BitTrex Ethereum 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 BitTrex Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Bitcoin and BitTrex Ethereum.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Coinbase Bitcoin USD  vs   BitTrex Ethereum Classic USD

Coinbase

Bitcoin on Coinbase in USD
 12,243 
(1,645)  11.85%
Market Cap: 1659.4 B

BitTrex

Ethereum Classic on BitTrex in USD
 37.77 
(3.23)  7.88%
Market Cap: 88.6 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to under-perform the BitTrex Ethereum. But the crypto apears to be less risky and, when comparing its historical volatility, Coinbase Bitcoin USD is 1.19 times less risky than BitTrex Ethereum. The crypto trades about -0.12 of its potential returns per unit of risk. The BitTrex Ethereum Classic USD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  3,810  in BitTrex Ethereum Classic USD on December 17, 2017 and sell it today you would earn a total of  290  from holding BitTrex Ethereum Classic USD or generate 7.61% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and BitTrex Ethereum
0.06

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Significant diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and BitTrex Ethereum Classic USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Ethereum Cla 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 BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum Cla has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and BitTrex Ethereum go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Bitcoin USD

Pair trading matchups for Coinbase Bitcoin

BitTrex Ethereum Cla

  
4 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Ethereum Classic USD are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.