This module allows you to analyze existing cross correlation between HitBTC DigitalNote USD and HitBTC DigitalCash USD. You can compare the effects of market volatilities on HitBTC DigitalNote and HitBTC DigitalCash 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 DigitalNote with a short position of HitBTC DigitalCash. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigitalNote
and HitBTC DigitalCash
HitBTC DigitalNote USD vs HitBTC DigitalCash USD
Assuming 30 trading days horizon, HitBTC DigitalNote USD is expected to under-perform the HitBTC DigitalCash. In addition to that, HitBTC DigitalNote is 1.4 times more volatile than HitBTC DigitalCash USD. It trades about -0.31 of its total potential returns per unit of risk. HitBTC DigitalCash USD is currently generating about -0.27 per unit of volatility. If you would invest 69,113 in HitBTC DigitalCash USD on February 21, 2018 and sell it today you would lose (27,558) from holding HitBTC DigitalCash USD or give up 39.87% 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 DigitalNote USD and HitBTC DigitalCash USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigitalCash USD and HitBTC DigitalNote 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 DigitalNote USD are associated (or correlated) with HitBTC DigitalCash. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigitalCash USD has no effect on the direction of HitBTC DigitalNote i.e. HitBTC DigitalNote and HitBTC DigitalCash go up and down completely randomly.
Over the last 30 days HitBTC DigitalNote USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC DigitalCash USD has generated negative risk-adjusted returns adding no value to investors with long positions.