Pair Correlation Between Coinbase Ethereum and BitBay Ethereum

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

Coinbase

Ethereum on Coinbase in USD
 670.15 
(28.83)  4.12%
Market Cap: 38.4 B
(12.95)

BitBay

Ethereum on BitBay in USD
 683.1 
43.1  6.73%
Market Cap: 43.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Ethereum is expected to generate 1.17 times less return on investment than BitBay Ethereum. But when comparing it to its historical volatility, Coinbase Ethereum USD is 1.3 times less risky than BitBay Ethereum. It trades about 0.32 of its potential returns per unit of risk. BitBay Ethereum USD is currently generating about 0.29 of returns per unit of risk over similar time horizon. If you would invest  29,345  in BitBay Ethereum USD on November 14, 2017 and sell it today you would earn a total of  38,965  from holding BitBay Ethereum USD or generate 132.78% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Ethereum and BitBay Ethereum
0.57

Parameters

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

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Ethereum USD

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.

BitBay Ethereum USD

  
19 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitBay Ethereum USD are ranked lower than 19 (%) of all global equities and portfolios over the last 30 days.