This module allows you to analyze existing cross correlation between Gemini Ethereum USD and Coinbase Ethereum USD. You can compare the effects of market volatilities on Gemini Ethereum and Coinbase 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 Ethereum with a short position of Coinbase Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gemini Ethereum
and Coinbase Ethereum
Gemini Ethereum USD vs Coinbase Ethereum USD
Assuming 30 trading days horizon, Gemini Ethereum USD is expected to under-perform the Coinbase Ethereum. But the crypto apears to be less risky and, when comparing its historical volatility, Gemini Ethereum USD is 1.03 times less risky than Coinbase Ethereum. The crypto trades about -0.38 of its potential returns per unit of risk. The Coinbase Ethereum USD is currently generating about -0.36 of returns per unit of risk over similar time horizon. If you would invest 82,702 in Coinbase Ethereum USD on February 23, 2018 and sell it today you would lose (30,858) from holding Coinbase Ethereum USD or give up 37.31% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Ethereum USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Ethereum USD and Gemini Ethereum 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 Ethereum USD are associated (or correlated) with Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of Gemini Ethereum i.e. Gemini Ethereum and Coinbase Ethereum go up and down completely randomly.
Over the last 30 days Gemini Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Coinbase Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.