Pair Correlation Between itBit Bitcoin and Gemini Bitcoin

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

itBit

Bitcoin on itBit in USD
 10,489 
268.18  2.49%
Market Cap: 225.7 B
(58.00)

Gemini

Bitcoin on Gemini in USD
 10,547 
214.89  2.00%
Market Cap: 682.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to generate 0.97 times more return on investment than Gemini Bitcoin. However, itBit Bitcoin USD is 1.03 times less risky than Gemini Bitcoin. It trades about 0.01 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about 0.01 per unit of risk. If you would invest  1,120,718  in itBit Bitcoin USD on January 23, 2018 and sell it today you would lose (32,831)  from holding itBit Bitcoin USD or give up 2.93% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between itBit Bitcoin and Gemini Bitcoin
0.87

Parameters

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

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

itBit Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Gemini Bitcoin USD

  
0 

Risk-Adjusted Performance

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