Pair Correlation Between HitBTC Ethereum and Kraken Ethereum

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

HitBTC

Ethereum on HitBTC in USD
 919.36 
18.51  1.97%
Market Cap: 4.8 B
 28.75 

Kraken

Ethereum on Kraken in USD
 890.61 
25.47  2.78%
Market Cap: 19.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, HitBTC Ethereum USD is expected to under-perform the Kraken Ethereum. In addition to that, HitBTC Ethereum is 1.08 times more volatile than Kraken Ethereum USD. It trades about -0.02 of its total potential returns per unit of risk. Kraken Ethereum USD is currently generating about -0.02 per unit of volatility. If you would invest  99,468  in Kraken Ethereum USD on January 22, 2018 and sell it today you would lose (7,860)  from holding Kraken Ethereum USD or give up 7.9% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between HitBTC Ethereum and Kraken Ethereum
0.94

Parameters

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

Diversification

Almost no diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

HitBTC Ethereum USD

  
0 

Risk-Adjusted Performance

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

Kraken Ethereum USD

  
0 

Risk-Adjusted Performance

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