Pair Correlation Between itBit Bitcoin and Poloniex Bitcoin

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

itBit

Bitcoin on itBit in USD
 17,515 
891.04  5.36%
Market Cap: 825.2 B
(309.11)

Poloniex

Bitcoin on Poloniex in USD
 17,824 
1,424  8.68%
Market Cap: 259.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to generate 1.24 times more return on investment than Poloniex Bitcoin. However, itBit Bitcoin is 1.24 times more volatile than Poloniex Bitcoin USD. It trades about 0.37 of its potential returns per unit of risk. Poloniex Bitcoin USD is currently generating about 0.46 per unit of risk. If you would invest  793,384  in itBit Bitcoin USD on November 15, 2017 and sell it today you would earn a total of  918,608  from holding itBit Bitcoin USD or generate 115.78% return on investment over 30 days.

Correlation Coefficient

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

Comparative Volatility

 Predicted Return Density 
      Returns 

itBit Bitcoin USD

  
24 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in itBit Bitcoin USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.

Poloniex Bitcoin USD

  
30 

Risk-Adjusted Performance

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

Poloniex Bitcoin USD

Pair trading matchups for Poloniex Bitcoin