This module allows you to analyze existing cross correlation between Gatecoin Ethereum USD and Coinroom Ethereum USD. You can compare the effects of market volatilities on Gatecoin Ethereum and Coinroom 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 Coinroom Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gatecoin Ethereum
and Coinroom Ethereum
Gatecoin Ethereum USD vs Coinroom Ethereum USD
Assuming 30 trading days horizon, Gatecoin Ethereum USD is expected to generate 0.82 times more return on investment than Coinroom Ethereum. However, Gatecoin Ethereum USD is 1.22 times less risky than Coinroom Ethereum. It trades about -0.08 of its potential returns per unit of risk. Coinroom Ethereum USD is currently generating about -0.09 per unit of risk. If you would invest 93,684 in Gatecoin Ethereum USD on February 18, 2018 and sell it today you would lose (24,685) from holding Gatecoin Ethereum USD or give up 26.35% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Gatecoin Ethereum USD and Coinroom Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinroom 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 Coinroom Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinroom Ethereum USD has no effect on the direction of Gatecoin Ethereum i.e. Gatecoin Ethereum and Coinroom Ethereum go up and down completely randomly.
Over the last 30 days Gatecoin Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Coinroom Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.