This module allows you to analyze existing cross correlation between Gatecoin Litecoin USD and BitTrex Ethereum Classic USD. You can compare the effects of market volatilities on Gatecoin Litecoin and BitTrex 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 Litecoin with a short position of BitTrex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gatecoin Litecoin
and BitTrex Ethereum
Gatecoin Litecoin USD vs BitTrex Ethereum Classic USD
Assuming 30 trading days horizon, Gatecoin Litecoin USD is expected to under-perform the BitTrex Ethereum. In addition to that, Gatecoin Litecoin is 1.74 times more volatile than BitTrex Ethereum Classic USD. It trades about -0.12 of its total potential returns per unit of risk. BitTrex Ethereum Classic USD is currently generating about -0.05 per unit of volatility. If you would invest 3,761 in BitTrex Ethereum Classic USD on December 18, 2017 and sell it today you would lose (1,161) from holding BitTrex Ethereum Classic USD or give up 30.87% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Gatecoin Litecoin USD and BitTrex Ethereum Classic USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Ethereum Cla and Gatecoin Litecoin 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 Litecoin USD are associated (or correlated) with BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum Cla has no effect on the direction of Gatecoin Litecoin i.e. Gatecoin Litecoin and BitTrex Ethereum go up and down completely randomly.
Over the last 30 days Gatecoin Litecoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days BitTrex Ethereum Classic USD has generated negative risk-adjusted returns adding no value to investors with long positions.