Pair Correlation Between HitBTC DigitalCash and Gatecoin Litecoin

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

HitBTC

DigitalCash on HitBTC in USD
 803.5 
(22.43)  2.72%
Market Cap: 2.6 B

Gatecoin

Litecoin on Gatecoin in USD
 100 
(150)  60%
Market Cap: 1.5 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, HitBTC DigitalCash USD is expected to generate 0.49 times more return on investment than Gatecoin Litecoin. However, HitBTC DigitalCash USD is 2.03 times less risky than Gatecoin Litecoin. It trades about -0.12 of its potential returns per unit of risk. Gatecoin Litecoin USD is currently generating about -0.12 per unit of risk. If you would invest  112,572  in HitBTC DigitalCash USD on December 18, 2017 and sell it today you would lose (42,434)  from holding HitBTC DigitalCash USD or give up 37.69% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between HitBTC DigitalCash and Gatecoin Litecoin
0.7

Parameters

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

Diversification

Poor diversification

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

HitBTC DigitalCash USD

Pair trading matchups for HitBTC DigitalCash

Gatecoin Litecoin USD

  
0 

Risk-Adjusted Performance

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

Gatecoin Litecoin USD

Pair trading matchups for Gatecoin Litecoin