This module allows you to analyze existing cross correlation between Coinroom Bitcoin USD and BitTrex Bitcoin USD. You can compare the effects of market volatilities on Coinroom Bitcoin and BitTrex Bitcoin 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 Coinroom Bitcoin with a short position of BitTrex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinroom Bitcoin
and BitTrex Bitcoin
Coinroom Bitcoin USD vs BitTrex Bitcoin USD
Assuming 30 trading days horizon, Coinroom Bitcoin USD is expected to under-perform the BitTrex Bitcoin. In addition to that, Coinroom Bitcoin is 1.05 times more volatile than BitTrex Bitcoin USD. It trades about -0.01 of its total potential returns per unit of risk. BitTrex Bitcoin USD is currently generating about 0.02 per unit of volatility. If you would invest 1,097,931 in BitTrex Bitcoin USD on January 18, 2018 and sell it today you would lose (28,756) from holding BitTrex Bitcoin USD or give up 2.62% 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 Coinroom Bitcoin USD and BitTrex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Bitcoin USD and Coinroom Bitcoin 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 Coinroom Bitcoin USD are associated (or correlated) with BitTrex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Bitcoin USD has no effect on the direction of Coinroom Bitcoin i.e. Coinroom Bitcoin and BitTrex Bitcoin go up and down completely randomly.
Over the last 30 days Coinroom Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.