Pair Correlation Between Gatecoin Ethereum and Bitfinex Ethereum

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

Gatecoin

Ethereum on Gatecoin in USD
 490 
38  8.41%
Market Cap: 4.1 M
 28.81 

Bitfinex

Ethereum on Bitfinex in USD
 461.19 
15.65  3.51%
Market Cap: 553.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Gatecoin Ethereum is expected to generate 1.16 times less return on investment than Bitfinex Ethereum. In addition to that, Gatecoin Ethereum is 1.33 times more volatile than Bitfinex Ethereum USD. It trades about 0.21 of its total potential returns per unit of risk. Bitfinex Ethereum USD is currently generating about 0.32 per unit of volatility. If you would invest  30,827  in Bitfinex Ethereum USD on November 11, 2017 and sell it today you would earn a total of  14,573  from holding Bitfinex Ethereum USD or generate 47.27% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Gatecoin Ethereum and Bitfinex Ethereum
0.88

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 Gatecoin Ethereum USD and Bitfinex Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Ethereum USD and Gatecoin 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 Gatecoin Ethereum USD are associated (or correlated) with Bitfinex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Ethereum USD has no effect on the direction of Gatecoin Ethereum i.e. Gatecoin Ethereum and Bitfinex Ethereum go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Gatecoin Ethereum USD

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gatecoin Ethereum USD are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.

Bitfinex Ethereum USD

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Ethereum USD are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.