This module allows you to analyze existing cross correlation between Kraken Bitcoin USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on Kraken Bitcoin and Coinbase 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 Kraken Bitcoin with a short position of Coinbase Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Bitcoin
and Coinbase Bitcoin
Kraken Bitcoin USD vs Coinbase Bitcoin USD
Assuming 30 trading days horizon, Kraken Bitcoin is expected to generate 1.07 times less return on investment than Coinbase Bitcoin. But when comparing it to its historical volatility, Kraken Bitcoin USD is 1.26 times less risky than Coinbase Bitcoin. It trades about 0.44 of its potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about 0.37 of returns per unit of risk over similar time horizon. If you would invest 781,889 in Coinbase Bitcoin USD on November 17, 2017 and sell it today you would earn a total of 1,160,268 from holding Coinbase Bitcoin USD or generate 148.39% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Bitcoin USD and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Bitcoin USD and Kraken 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 Kraken Bitcoin USD are associated (or correlated) with Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of Kraken Bitcoin i.e. Kraken Bitcoin and Coinbase Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Bitcoin USD are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Bitcoin USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.