Pair Correlation Between Gemini Bitcoin and LakeBTC Bitcoin

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

Gemini

Bitcoin on Gemini in USD
 18,570 
819.92  4.62%
Market Cap: 2630.8 B
 207.35 

LakeBTC

Bitcoin on LakeBTC in USD
 18,363 
774.14  4.4%
Market Cap: 40.3 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Gemini Bitcoin is expected to generate 1.01 times less return on investment than LakeBTC Bitcoin. But when comparing it to its historical volatility, Gemini Bitcoin USD is 1.13 times less risky than LakeBTC Bitcoin. It trades about 0.46 of its potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about 0.41 of returns per unit of risk over similar time horizon. If you would invest  780,008  in LakeBTC Bitcoin USD on November 16, 2017 and sell it today you would earn a total of  1,031,286  from holding LakeBTC Bitcoin USD or generate 132.21% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Gemini Bitcoin and LakeBTC Bitcoin
0.99

Parameters

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

Diversification

No risk reduction

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Gemini Bitcoin USD

  
30 

Risk-Adjusted Performance

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

LakeBTC Bitcoin USD

  
26 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.