This module allows you to analyze existing cross correlation between Kraken Monero USD and HitBTC ByteCoin USD. You can compare the effects of market volatilities on Kraken Monero and HitBTC ByteCoin 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 Monero with a short position of HitBTC ByteCoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Monero
and HitBTC ByteCoin
Kraken Monero USD vs HitBTC ByteCoin USD
Assuming 30 trading days horizon, Kraken Monero USD is expected to generate 1.15 times more return on investment than HitBTC ByteCoin. However, Kraken Monero is 1.15 times more volatile than HitBTC ByteCoin USD. It trades about -0.1 of its potential returns per unit of risk. HitBTC ByteCoin USD is currently generating about -0.36 per unit of risk. If you would invest 31,001 in Kraken Monero USD on February 19, 2018 and sell it today you would lose (7,972) from holding Kraken Monero USD or give up 25.72% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and HitBTC ByteCoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC ByteCoin USD and Kraken Monero 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 Monero USD are associated (or correlated) with HitBTC ByteCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC ByteCoin USD has no effect on the direction of Kraken Monero i.e. Kraken Monero and HitBTC ByteCoin go up and down completely randomly.
Over the last 30 days Kraken Monero USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC ByteCoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.