Pair Correlation Between Coinbase Bitcoin and LocalBitcoins Bitcoin

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


Bitcoin on Coinbase in USD
167.49  1.56%
Market Cap: 1783.9 B


Bitcoin on LocalBitcoins in USD
4,905  30.33%
Market Cap: 4.1 B
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin is expected to generate 112.6 times less return on investment than LocalBitcoins Bitcoin. But when comparing it to its historical volatility, Coinbase Bitcoin USD is 6.54 times less risky than LocalBitcoins Bitcoin. It trades about 0.01 of its potential returns per unit of risk. LocalBitcoins Bitcoin USD is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest  1,737,201  in LocalBitcoins Bitcoin USD on January 20, 2018 and sell it today you would lose (57,398)  from holding LocalBitcoins Bitcoin USD or give up 3.3% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and LocalBitcoins Bitcoin


Time Period1 Month [change]
StrengthVery Weak
ValuesDaily Returns


Modest diversification

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

Comparative Volatility

 Predicted Return Density 

Coinbase Bitcoin USD


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.

LocalBitcoins Bitcoin USD


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.