This module allows you to analyze existing cross correlation between HitBTC Ethereum USD and Lykke Ethereum USD. You can compare the effects of market volatilities on HitBTC Ethereum and Lykke 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 Lykke Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC Ethereum
and Lykke Ethereum
HitBTC Ethereum USD vs Lykke Ethereum USD
Assuming 30 trading days horizon, HitBTC Ethereum USD is expected to generate 0.95 times more return on investment than Lykke Ethereum. However, HitBTC Ethereum USD is 1.05 times less risky than Lykke Ethereum. It trades about -0.43 of its potential returns per unit of risk. Lykke Ethereum USD is currently generating about -0.41 per unit of risk. If you would invest 93,000 in HitBTC Ethereum USD on February 17, 2018 and sell it today you would lose (38,719) from holding HitBTC Ethereum USD or give up 41.63% 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 Ethereum USD and Lykke Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lykke 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 Lykke Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykke Ethereum USD has no effect on the direction of HitBTC Ethereum i.e. HitBTC Ethereum and Lykke Ethereum go up and down completely randomly.
Over the last 30 days HitBTC Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Lykke Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.