Pair Correlation Between Gatecoin Ethereum and Poloniex Ethereum

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

Gatecoin

Ethereum on Gatecoin in USD
 695 
(74.5)  9.68%
Market Cap: 4.1 M
 11.81 

Poloniex

Ethereum on Poloniex in USD
 683.19 
(13.99)  2.01%
Market Cap: 389.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Gatecoin Ethereum USD is expected to generate 1.15 times more return on investment than Poloniex Ethereum. However, Gatecoin Ethereum is 1.15 times more volatile than Poloniex Ethereum USD. It trades about 0.32 of its potential returns per unit of risk. Poloniex Ethereum USD is currently generating about 0.37 per unit of risk. If you would invest  33,500  in Gatecoin Ethereum USD on November 16, 2017 and sell it today you would earn a total of  36,000  from holding Gatecoin Ethereum USD or generate 107.46% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Gatecoin Ethereum and Poloniex Ethereum
0.86

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Gatecoin Ethereum USD

  
21 

Risk-Adjusted Performance

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

Poloniex Ethereum USD

  
24 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Ethereum USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.