This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and Cexio Ethereum USD. You can compare the effects of market volatilities on Coinbase Bitcoin and Cexio 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 Cexio Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Bitcoin
and Cexio Ethereum
Coinbase Bitcoin USD vs Cexio Ethereum USD
Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 1.3 times more return on investment than Cexio Ethereum. However, Coinbase Bitcoin is 1.3 times more volatile than Cexio Ethereum USD. It trades about -0.19 of its potential returns per unit of risk. Cexio Ethereum USD is currently generating about -0.46 per unit of risk. If you would invest 1,082,999 in Coinbase Bitcoin USD on February 16, 2018 and sell it today you would lose (317,000) from holding Coinbase Bitcoin USD or give up 29.27% of portfolio value 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 Cexio Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cexio Ethereum 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 Cexio Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cexio Ethereum USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Cexio Ethereum go up and down completely randomly.
Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Cexio Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.