Pair Correlation Between Kraken Bitcoin and Poloniex Bitcoin

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

Kraken

Bitcoin on Kraken in USD
 16,120 
120.2  0.75%
Market Cap: 771.3 B
 8.18 
0.050744% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

Poloniex

Bitcoin on Poloniex in USD
 16,112 
(231.98)  1.42%
Market Cap: 259.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to generate 1.1 times more return on investment than Poloniex Bitcoin. However, Kraken Bitcoin is 1.1 times more volatile than Poloniex Bitcoin USD. It trades about 0.47 of its potential returns per unit of risk. Poloniex Bitcoin USD is currently generating about 0.47 per unit of risk. If you would invest  655,000  in Kraken Bitcoin USD on November 13, 2017 and sell it today you would earn a total of  985,160  from holding Kraken Bitcoin USD or generate 150.41% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Bitcoin and Poloniex Bitcoin
0.97

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken 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 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 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 Kraken Bitcoin i.e. Kraken Bitcoin and Poloniex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Bitcoin USD

  
31 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Bitcoin USD are ranked lower than 31 (%) of all global equities and portfolios over the last 30 days.

Kraken Bitcoin USD

Pair trading matchups for Kraken Bitcoin

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