Pair Correlation Between Coinbase Bitcoin and Poloniex Bitcoin

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

Coinbase

Bitcoin on Coinbase in USD
 19,422 
1,744  9.86%
Market Cap: 7461.7 B
 637.5 

Poloniex

Bitcoin on Poloniex in USD
 18,785 
1,307  7.48%
Market Cap: 259.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 1.45 times more return on investment than Poloniex Bitcoin. However, Coinbase Bitcoin is 1.45 times more volatile than Poloniex Bitcoin USD. It trades about 0.36 of its potential returns per unit of risk. Poloniex Bitcoin USD is currently generating about 0.49 per unit of risk. If you would invest  771,399  in Coinbase Bitcoin USD on November 16, 2017 and sell it today you would earn a total of  1,063,601  from holding Coinbase Bitcoin USD or generate 137.88% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and Poloniex Bitcoin
0.98

Parameters

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

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Bitcoin USD

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Bitcoin USD are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.

Poloniex Bitcoin USD

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.