This module allows you to analyze existing cross correlation between HitBTC DigiByte USD and HitBTC Stratis USD. You can compare the effects of market volatilities on HitBTC DigiByte and HitBTC Stratis 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 DigiByte with a short position of HitBTC Stratis. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigiByte
and HitBTC Stratis
HitBTC DigiByte USD vs HitBTC Stratis USD
Assuming 30 trading days horizon, HitBTC DigiByte USD is expected to generate 1.11 times more return on investment than HitBTC Stratis. However, HitBTC DigiByte is 1.11 times more volatile than HitBTC Stratis USD. It trades about -0.35 of its potential returns per unit of risk. HitBTC Stratis USD is currently generating about -0.4 per unit of risk. If you would invest 4.40 in HitBTC DigiByte USD on February 15, 2018 and sell it today you would lose (2.21) from holding HitBTC DigiByte USD or give up 50.23% 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 HitBTC DigiByte USD and HitBTC Stratis USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC Stratis USD and HitBTC DigiByte 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 DigiByte USD are associated (or correlated) with HitBTC Stratis. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Stratis USD has no effect on the direction of HitBTC DigiByte i.e. HitBTC DigiByte and HitBTC Stratis go up and down completely randomly.
Over the last 30 days HitBTC DigiByte USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC Stratis USD has generated negative risk-adjusted returns adding no value to investors with long positions.