This module allows you to analyze existing cross correlation between Gatecoin Bitcoin USD and BitTrex Bitcoin USD. You can compare the effects of market volatilities on Gatecoin 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 Gatecoin Bitcoin with a short position of BitTrex Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Gatecoin Bitcoin and BitTrex Bitcoin.
Assuming 30 trading days horizon, Gatecoin Bitcoin USD is expected to generate 1.39 times more return on investment than BitTrex Bitcoin. However, Gatecoin Bitcoin is 1.39 times more volatile than BitTrex Bitcoin USD. It trades about -0.08 of its potential returns per unit of risk. BitTrex Bitcoin USD is currently generating about -0.2 per unit of risk. If you would invest 890,000 in Gatecoin Bitcoin USD on April 26, 2018 and sell it today you would lose (95,000) from holding Gatecoin Bitcoin USD or give up 10.67% of portfolio value over 30 days.
Pair Corralation between Gatecoin Bitcoin and BitTrex Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Gatecoin 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 Gatecoin 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 Gatecoin 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 Gatecoin Bitcoin i.e. Gatecoin Bitcoin and BitTrex Bitcoin go up and down completely randomly.
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