This module allows you to analyze existing cross correlation between Kraken Monero USD and Poloniex Stellar USD. You can compare the effects of market volatilities on Kraken Monero and Poloniex Stellar 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 Poloniex Stellar. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Monero
and Poloniex Stellar
Kraken Monero USD vs Poloniex Stellar USD
Assuming 30 trading days horizon, Kraken Monero USD is expected to under-perform the Poloniex Stellar. But the crypto apears to be less risky and, when comparing its historical volatility, Kraken Monero USD is 2.17 times less risky than Poloniex Stellar. The crypto trades about -0.1 of its potential returns per unit of risk. The Poloniex Stellar USD is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 24.68 in Poloniex Stellar USD on December 19, 2017 and sell it today you would earn a total of 25.22 from holding Poloniex Stellar USD or generate 102.19% return on investment over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and Poloniex Stellar USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Stellar 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 Poloniex Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Stellar USD has no effect on the direction of Kraken Monero i.e. Kraken Monero and Poloniex Stellar 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.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Stellar USD are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.