This module allows you to analyze existing cross correlation between HitBTC DigitalCash USD and Poloniex Stellar USD. You can compare the effects of market volatilities on HitBTC DigitalCash and Poloniex Stellar 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 Poloniex Stellar. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigitalCash
and Poloniex Stellar
HitBTC DigitalCash USD vs Poloniex Stellar USD
Assuming 30 trading days horizon, HitBTC DigitalCash USD is expected to under-perform the Poloniex Stellar. But the crypto apears to be less risky and, when comparing its historical volatility, HitBTC DigitalCash USD is 2.55 times less risky than Poloniex Stellar. The crypto trades about -0.05 of its potential returns per unit of risk. The Poloniex Stellar USD is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 21 in Poloniex Stellar USD on December 21, 2017 and sell it today you would earn a total of 30 from holding Poloniex Stellar USD or generate 142.86% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigitalCash USD and Poloniex Stellar USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Stellar 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 Poloniex Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Stellar USD has no effect on the direction of HitBTC DigitalCash i.e. HitBTC DigitalCash and Poloniex Stellar 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Stellar USD are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days.