This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and HitBTC DigitalNote USD. You can compare the effects of market volatilities on Coinbase Bitcoin and HitBTC DigitalNote 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 HitBTC DigitalNote. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Bitcoin
and HitBTC DigitalNote
Coinbase Bitcoin USD vs HitBTC DigitalNote USD
Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to under-perform the HitBTC DigitalNote. But the crypto apears to be less risky and, when comparing its historical volatility, Coinbase Bitcoin USD is 2.45 times less risky than HitBTC DigitalNote. The crypto trades about -0.06 of its potential returns per unit of risk. The HitBTC DigitalNote USD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2.48 in HitBTC DigitalNote USD on December 23, 2017 and sell it today you would earn a total of 0.09 from holding HitBTC DigitalNote USD or generate 3.51% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and HitBTC DigitalNote USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigitalNote 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 HitBTC DigitalNote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigitalNote USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and HitBTC DigitalNote 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.
Compared to the overall equity markets, risk-adjusted returns on investments in HitBTC DigitalNote USD are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.