Pair Correlation Between Kraken Ethereum and Gatecoin Ethereum

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

Kraken

Ethereum on Kraken in USD
 685.15 
(21.69)  3.07%
Market Cap: 5.2 B
(9.85)

Gatecoin

Ethereum on Gatecoin in USD
 695 
(74.5)  9.68%
Market Cap: 4.1 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Ethereum is expected to generate 1.01 times less return on investment than Gatecoin Ethereum. But when comparing it to its historical volatility, Kraken Ethereum USD is 1.16 times less risky than Gatecoin Ethereum. It trades about 0.37 of its potential returns per unit of risk. Gatecoin Ethereum USD is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest  33,500  in Gatecoin Ethereum USD on November 16, 2017 and sell it today you would earn a total of  36,000  from holding Gatecoin Ethereum USD or generate 107.46% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Ethereum and Gatecoin Ethereum
0.86

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken Ethereum USD and Gatecoin Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gatecoin Ethereum USD and Kraken 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 Kraken Ethereum USD are associated (or correlated) with Gatecoin Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatecoin Ethereum USD has no effect on the direction of Kraken Ethereum i.e. Kraken Ethereum and Gatecoin Ethereum go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Ethereum USD

  
24 

Risk-Adjusted Performance

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

Gatecoin Ethereum USD

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gatecoin Ethereum USD are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.