Pair Correlation Between Coinbase Ethereum and Bitstamp Ethereum

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

Coinbase

Ethereum on Coinbase in USD
 537.96 
54.95  11.38%
Market Cap: 38.4 B
 8.95 

Bitstamp

Ethereum on Bitstamp in USD
 529.01 
31.05  6.24%
Market Cap: 746.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Ethereum USD is expected to generate 1.06 times more return on investment than Bitstamp Ethereum. However, Coinbase Ethereum is 1.06 times more volatile than Bitstamp Ethereum USD. It trades about 0.39 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about 0.37 per unit of risk. If you would invest  30,720  in Coinbase Ethereum USD on November 12, 2017 and sell it today you would earn a total of  22,278  from holding Coinbase Ethereum USD or generate 72.52% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Ethereum and Bitstamp Ethereum
0.85

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy96.77%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Ethereum USD

  
25 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.

Bitstamp Ethereum USD

  
24 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Ethereum USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.