Pair Correlation Between HitBTC DigitalCash and Coinbase Bitcoin

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

HitBTC

DigitalCash on HitBTC in USD
 837.73 
(77.4)  8.46%
Market Cap: 3.5 B

Coinbase

Bitcoin on Coinbase in USD
 12,017 
(1,871)  13.47%
Market Cap: 1659.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, HitBTC DigitalCash USD is expected to generate 1.3 times more return on investment than Coinbase Bitcoin. However, HitBTC DigitalCash is 1.3 times more volatile than Coinbase Bitcoin USD. It trades about -0.05 of its potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.12 per unit of risk. If you would invest  102,062  in HitBTC DigitalCash USD on December 17, 2017 and sell it today you would lose (23,471)  from holding HitBTC DigitalCash USD or give up 23.0% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between HitBTC DigitalCash and Coinbase Bitcoin
0.49

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy96.77%
ValuesDaily Returns

Diversification

Very weak diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

HitBTC DigitalCash USD

  
0 

Risk-Adjusted Performance

Over the last 30 days HitBTC DigitalCash USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Bitcoin USD

Pair trading matchups for Coinbase Bitcoin