Pair Correlation Between Kraken Bitcoin and LiveCoin Bitcoin

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

Kraken

Bitcoin on Kraken in USD
 10,246 
395.90  4.02%
Market Cap: 903.3 B
(44.40)

LiveCoin

Bitcoin on LiveCoin in USD
 10,290 
146.99  1.45%
Market Cap: 43.6 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to generate 1.16 times more return on investment than LiveCoin Bitcoin. However, Kraken Bitcoin is 1.16 times more volatile than LiveCoin Bitcoin USD. It trades about -0.04 of its potential returns per unit of risk. LiveCoin Bitcoin USD is currently generating about -0.08 per unit of risk. If you would invest  1,123,610  in Kraken Bitcoin USD on January 24, 2018 and sell it today you would lose (136,530)  from holding Kraken Bitcoin USD or give up 12.15% of portfolio value over 30 days.

Correlation Coefficient

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Bitcoin USD

  
0 

Risk-Adjusted Performance

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

LiveCoin Bitcoin USD

  
0 

Risk-Adjusted Performance

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