This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and Coinroom Bitcoin USD. You can compare the effects of market volatilities on Coinbase Bitcoin and Coinroom 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 Coinroom Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Bitcoin and Coinroom Bitcoin.
Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 1.08 times more return on investment than Coinroom Bitcoin. However, Coinbase Bitcoin is 1.08 times more volatile than Coinroom Bitcoin USD. It trades about 0.25 of its potential returns per unit of risk. Coinroom Bitcoin USD is currently generating about 0.24 per unit of risk. If you would invest 618,002 in Coinbase Bitcoin USD on June 23, 2018 and sell it today you would earn a total of 151,097 from holding Coinbase Bitcoin USD or generate 24.45% return on investment over 30 days.
Pair Corralation between Coinbase Bitcoin and Coinroom Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and Coinroom Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinroom 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 Coinroom Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinroom Bitcoin USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Coinroom Bitcoin go up and down completely randomly.
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