This module allows you to analyze existing cross correlation between Exmo Bitcoin USD and LakeBTC Bitcoin USD. You can compare the effects of market volatilities on Exmo Bitcoin and LakeBTC 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 LakeBTC Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Exmo Bitcoin and LakeBTC Bitcoin.
Assuming 30 trading days horizon, Exmo Bitcoin USD is expected to under-perform the LakeBTC Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Exmo Bitcoin USD is 1.05 times less risky than LakeBTC Bitcoin. The crypto trades about -0.06 of its potential returns per unit of risk. The LakeBTC Bitcoin USD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 710,500 in LakeBTC Bitcoin USD on August 21, 2018 and sell it today you would lose (6,077) from holding LakeBTC Bitcoin USD or give up 0.86% of portfolio value over 30 days.
Pair Corralation between Exmo Bitcoin and LakeBTC Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Exmo Bitcoin USD and LakeBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LakeBTC 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 LakeBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeBTC Bitcoin USD has no effect on the direction of Exmo Bitcoin i.e. Exmo Bitcoin and LakeBTC Bitcoin go up and down completely randomly.
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See also your portfolio center. Please also try Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.