Pair Correlation Between itBit Bitcoin and Bitfinex Bitcoin

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

itBit

Bitcoin on itBit in USD
 16,865 
426.55  2.59%
Market Cap: 283.6 B
 67.94 

Bitfinex

Bitcoin on Bitfinex in USD
 16,797 
(418)  2.43%
Market Cap: 11621.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to generate 1.1 times more return on investment than Bitfinex Bitcoin. However, itBit Bitcoin is 1.1 times more volatile than Bitfinex Bitcoin USD. It trades about 0.48 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.49 per unit of risk. If you would invest  594,022  in itBit Bitcoin USD on November 12, 2017 and sell it today you would earn a total of  1,049,817  from holding itBit Bitcoin USD or generate 176.73% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between itBit Bitcoin and Bitfinex Bitcoin
0.98

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 itBit Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and itBit Bitcoin 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 itBit Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

itBit Bitcoin USD

  
31 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in itBit Bitcoin USD are ranked lower than 31 (%) of all global equities and portfolios over the last 30 days.

Bitfinex Bitcoin USD

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.