This module allows you to analyze existing cross correlation between HitBTC DigitalCash USD and HitBTC NEM USD. You can compare the effects of market volatilities on HitBTC DigitalCash and HitBTC NEM 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 HitBTC NEM. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigitalCash
and HitBTC NEM
HitBTC DigitalCash USD vs HitBTC NEM USD
Assuming 30 trading days horizon, HitBTC DigitalCash USD is expected to generate 0.8 times more return on investment than HitBTC NEM. However, HitBTC DigitalCash USD is 1.26 times less risky than HitBTC NEM. It trades about -0.16 of its potential returns per unit of risk. HitBTC NEM USD is currently generating about -0.16 per unit of risk. If you would invest 63,863 in HitBTC DigitalCash USD on February 22, 2018 and sell it today you would lose (17,900) from holding HitBTC DigitalCash USD or give up 28.03% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigitalCash USD and HitBTC NEM USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC NEM 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 HitBTC NEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC NEM USD has no effect on the direction of HitBTC DigitalCash i.e. HitBTC DigitalCash and HitBTC NEM go up and down completely randomly.
Over the last 30 days HitBTC DigitalCash USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC NEM USD has generated negative risk-adjusted returns adding no value to investors with long positions.