This module allows you to analyze existing cross correlation between Exmo Bitcoin USD and BitTrex Bitcoin USD. You can compare the effects of market volatilities on Exmo 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 Exmo Bitcoin with a short position of BitTrex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Exmo Bitcoin
and BitTrex Bitcoin
Exmo Bitcoin USD vs BitTrex Bitcoin USD
Assuming 30 trading days horizon, Exmo Bitcoin USD is expected to under-perform the BitTrex Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Exmo Bitcoin USD is 1.08 times less risky than BitTrex Bitcoin. The crypto trades about -0.11 of its potential returns per unit of risk. The BitTrex Bitcoin USD is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 1,289,400 in BitTrex Bitcoin USD on January 19, 2018 and sell it today you would lose (229,400) from holding BitTrex Bitcoin USD or give up 17.79% 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 Exmo 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 Exmo 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 Exmo 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 Exmo Bitcoin i.e. Exmo Bitcoin and BitTrex Bitcoin go up and down completely randomly.
Over the last 30 days Exmo Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days BitTrex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.