This module allows you to analyze existing cross correlation between itBit Bitcoin USD and HitBTC Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and HitBTC 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 HitBTC Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of itBit Bitcoin
and HitBTC Bitcoin
itBit Bitcoin USD vs HitBTC Bitcoin USD
Assuming 30 trading days horizon, itBit Bitcoin USD is expected to under-perform the HitBTC Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, itBit Bitcoin USD is 1.0 times less risky than HitBTC Bitcoin. The crypto trades about -0.07 of its potential returns per unit of risk. The HitBTC Bitcoin USD is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,277,972 in HitBTC Bitcoin USD on January 19, 2018 and sell it today you would lose (208,076) from holding HitBTC Bitcoin USD or give up 16.28% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and HitBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC 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 HitBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and HitBTC Bitcoin go up and down completely randomly.
Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.