This module allows you to analyze existing cross correlation between Coinbase Ethereum USD and BitTrex Ethereum USD. You can compare the effects of market volatilities on Coinbase Ethereum and BitTrex 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 BitTrex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Ethereum
and BitTrex Ethereum
Coinbase Ethereum USD vs BitTrex Ethereum USD
Assuming 30 trading days horizon, Coinbase Ethereum USD is expected to generate 0.95 times more return on investment than BitTrex Ethereum. However, Coinbase Ethereum USD is 1.06 times less risky than BitTrex Ethereum. It trades about -0.38 of its potential returns per unit of risk. BitTrex Ethereum USD is currently generating about -0.38 per unit of risk. If you would invest 93,627 in Coinbase Ethereum USD on February 15, 2018 and sell it today you would lose (38,060) from holding Coinbase Ethereum USD or give up 40.65% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Ethereum USD and BitTrex Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex 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 BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum USD has no effect on the direction of Coinbase Ethereum i.e. Coinbase Ethereum and BitTrex Ethereum go up and down completely randomly.
Over the last 30 days Coinbase Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days BitTrex Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.