Pair Correlation Between Gemini Bitcoin and Bitfinex Bitcoin

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

Gemini

Bitcoin on Gemini in USD
 19,185 
1,441  8.12%
Market Cap: 2630.8 B
 263.01 

Bitfinex

Bitcoin on Bitfinex in USD
 18,922 
(288)  1.5%
Market Cap: 11621.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Gemini Bitcoin is expected to generate 1.01 times less return on investment than Bitfinex Bitcoin. But when comparing it to its historical volatility, Gemini Bitcoin USD is 1.05 times less risky than Bitfinex Bitcoin. It trades about 0.47 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest  772,470  in Bitfinex Bitcoin USD on November 16, 2017 and sell it today you would earn a total of  1,125,230  from holding Bitfinex Bitcoin USD or generate 145.67% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Gemini Bitcoin and Bitfinex Bitcoin
0.97

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Gemini 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 Gemini Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Gemini Bitcoin USD

  
31 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gemini Bitcoin USD are ranked lower than 31 (%) of all global equities and portfolios over the last 30 days.

Bitfinex Bitcoin USD

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.