This module allows you to analyze existing cross correlation between Gemini Bitcoin USD and Quoine Bitcoin USD. You can compare the effects of market volatilities on Gemini Bitcoin and Quoine 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 Quoine Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Gemini Bitcoin and Quoine Bitcoin.
Assuming 30 trading days horizon, Gemini Bitcoin USD is expected to generate 0.77 times more return on investment than Quoine Bitcoin. However, Gemini Bitcoin USD is 1.3 times less risky than Quoine Bitcoin. It trades about -0.26 of its potential returns per unit of risk. Quoine Bitcoin USD is currently generating about -0.21 per unit of risk. If you would invest 643,957 in Gemini Bitcoin USD on October 17, 2018 and sell it today you would lose (89,440) from holding Gemini Bitcoin USD or give up 13.89% of portfolio value over 30 days.
Pair Corralation between Gemini Bitcoin and Quoine Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Quoine Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Quoine 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 Quoine Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoine Bitcoin USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Quoine Bitcoin go up and down completely randomly.
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