This module allows you to analyze existing cross correlation between HitBTC NEM USD and HitBTC DigiByte USD. You can compare the effects of market volatilities on HitBTC NEM and HitBTC DigiByte 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 NEM with a short position of HitBTC DigiByte. See also your portfolio center. Please also check ongoing floating volatility patterns of HitBTC NEM and HitBTC DigiByte.
Assuming 30 trading days horizon, HitBTC NEM is expected to generate 1.7 times less return on investment than HitBTC DigiByte. But when comparing it to its historical volatility, HitBTC NEM USD is 1.0 times less risky than HitBTC DigiByte. It trades about 0.04 of its potential returns per unit of risk. HitBTC DigiByte USD is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 3.37 in HitBTC DigiByte USD on March 25, 2018 and sell it today you would earn a total of 0.55 from holding HitBTC DigiByte USD or generate 16.44% return on investment over 30 days.
Pair Corralation between HitBTC NEM and HitBTC DigiByte
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC NEM USD and HitBTC DigiByte USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigiByte USD and HitBTC NEM 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 NEM USD are associated (or correlated) with HitBTC DigiByte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigiByte USD has no effect on the direction of HitBTC NEM i.e. HitBTC NEM and HitBTC DigiByte go up and down completely randomly.
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