Pair Correlation Between Coinbase Bitcoin and itBit Bitcoin

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

Coinbase

Bitcoin on Coinbase in USD
 9,625 
81.82  0.86%
Market Cap: 1542.1 B
(106.85)

itBit

Bitcoin on itBit in USD
 9,732 
198.01  2.08%
Market Cap: 389.5 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to under-perform the itBit Bitcoin. In addition to that, Coinbase Bitcoin is 1.05 times more volatile than itBit Bitcoin USD. It trades about -0.04 of its total potential returns per unit of risk. itBit Bitcoin USD is currently generating about -0.03 per unit of volatility. If you would invest  1,090,078  in itBit Bitcoin USD on January 25, 2018 and sell it today you would lose (116,881)  from holding itBit Bitcoin USD or give up 10.72% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and itBit Bitcoin
1.0

Parameters

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

Diversification

No risk reduction

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

itBit Bitcoin USD

  
0 

Risk-Adjusted Performance

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

itBit Bitcoin USD

Pair trading matchups for itBit Bitcoin