This module allows you to analyze existing cross correlation between Gemini Bitcoin USD and Exenium Ethereum USD. You can compare the effects of market volatilities on Gemini Bitcoin and Exenium 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 Gemini Bitcoin with a short position of Exenium Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of Gemini Bitcoin and Exenium Ethereum.
|Horizon||30 Days Login to change|
|Gemini Bitcoin USD|
Over the last 30 days Gemini Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat weak basic indicators, Gemini Bitcoin sustained solid returns over the last few months and may actually be approaching a breakup point.
|Exenium Ethereum USD|
Over the last 30 days Exenium Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably fragile technical indicators, Exenium Ethereum revealed solid returns over the last few months and may actually be approaching a breakup point.
Gemini Bitcoin and Exenium Ethereum Volatility Contrast
Gemini Bitcoin USD vs. Exenium Ethereum USD
Assuming 30 trading days horizon, Gemini Bitcoin is expected to generate 4.42 times less return on investment than Exenium Ethereum. But when comparing it to its historical volatility, Gemini Bitcoin USD is 4.42 times less risky than Exenium Ethereum. It trades about 0.71 of its potential returns per unit of risk. Exenium Ethereum USD is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 20,117 in Exenium Ethereum USD on August 20, 2019 and sell it today you would earn a total of 1,413 from holding Exenium Ethereum USD or generate 7.02% return on investment over 30 days.
Pair Corralation between Gemini Bitcoin and Exenium Ethereum
|Time Period||3 Months [change]|
Diversification Opportunities for Gemini Bitcoin and Exenium Ethereum
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Exenium Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exenium Ethereum 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 Exenium Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exenium Ethereum USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Exenium Ethereum go up and down completely randomly.
See also your portfolio center. Please also try Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.