This module allows you to analyze existing cross correlation between Coinbase Ethereum USD and Gemini Ethereum USD. You can compare the effects of market volatilities on Coinbase Ethereum and Gemini 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 Gemini Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Ethereum
and Gemini Ethereum
Coinbase Ethereum USD vs Gemini Ethereum USD
Assuming 30 trading days horizon, Coinbase Ethereum USD is expected to under-perform the Gemini Ethereum. But the crypto apears to be less risky and, when comparing its historical volatility, Coinbase Ethereum USD is 1.24 times less risky than Gemini Ethereum. The crypto trades about -0.07 of its potential returns per unit of risk. The Gemini Ethereum USD is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 99,738 in Gemini Ethereum USD on January 22, 2018 and sell it today you would lose (11,038) from holding Gemini Ethereum USD or give up 11.07% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Ethereum USD and Gemini Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gemini 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 Gemini Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Ethereum USD has no effect on the direction of Coinbase Ethereum i.e. Coinbase Ethereum and Gemini 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 Gemini Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.