Pair Correlation Between Coinbase Ethereum and Kraken Ethereum

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

Coinbase

Ethereum on Coinbase in USD
 627 
(75.01)  10.69%
Market Cap: 38.4 B
(36.69)

Kraken

Ethereum on Kraken in USD
 663.69 
(39.31)  5.59%
Market Cap: 5.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Ethereum USD is expected to generate 1.22 times more return on investment than Kraken Ethereum. However, Coinbase Ethereum is 1.22 times more volatile than Kraken Ethereum USD. It trades about 0.32 of its potential returns per unit of risk. Kraken Ethereum USD is currently generating about 0.35 per unit of risk. If you would invest  32,931  in Coinbase Ethereum USD on November 14, 2017 and sell it today you would earn a total of  36,970  from holding Coinbase Ethereum USD or generate 112.27% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Ethereum and Kraken Ethereum
0.89

Parameters

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

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Ethereum USD

  
20 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.

Kraken Ethereum USD

  
23 

Risk-Adjusted Performance

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