Correlation Analysis Between itBit Ethereum and Bitstamp Ethereum

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

Comparative Performance

itBit Ethereum USD  
00

Risk-Adjusted Performance

Over the last 30 days itBit Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental drivers remain rather sound which may send shares a bit higher in September 2019. The ongoing tumult may also be a sign of longer-term up-swing for the entity shareholders.
Bitstamp Ethereum USD  
00

Risk-Adjusted Performance

Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with weak performance in the last few months, the Crypto's technical indicators remain considerably steady which may send shares a bit higher in September 2019. The new chaos may also be a sign of medium term up-swing for the entity stakeholders.

itBit Ethereum and Bitstamp Ethereum Volatility Contrast

 Predicted Return Density 
      Returns 

itBit Ethereum USD  vs.  Bitstamp Ethereum USD

itBit

Ethereum on itBit in USD

 190.45 
(1.80)  0.94%
Market Cap: 213 M
  

Bitstamp

Ethereum on Bitstamp in USD

 189.74 
(3.54)  1.83%
Market Cap: 763.1 M
 0.71 
0.37% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Ethereum USD is expected to generate 1.04 times more return on investment than Bitstamp Ethereum. However, itBit Ethereum is 1.04 times more volatile than Bitstamp Ethereum USD. It trades about -0.16 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.17 per unit of risk. If you would invest  31,005  in itBit Ethereum USD on July 27, 2019 and sell it today you would lose (11,960)  from holding itBit Ethereum USD or give up 38.57% of portfolio value over 30 days.

Pair Corralation between itBit Ethereum and Bitstamp Ethereum

0.99
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for itBit Ethereum and Bitstamp Ethereum

itBit Ethereum USD diversification synergy

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding itBit Ethereum USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Ethereum USD and itBit Ethereum 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 Ethereum USD are associated (or correlated) with Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of itBit Ethereum i.e. itBit Ethereum and Bitstamp Ethereum go up and down completely randomly.
See also your portfolio center. Please also try Money Flow Index module to determine momentum by analyzing money flow index and other technical indicators.


 
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