This module allows you to analyze existing cross correlation between LakeBTC Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on LakeBTC Bitcoin and Kraken 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 LakeBTC Bitcoin with a short position of Kraken Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of LakeBTC Bitcoin and Kraken Bitcoin.
Assuming 30 trading days horizon, LakeBTC Bitcoin USD is expected to under-perform the Kraken Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, LakeBTC Bitcoin USD is 1.33 times less risky than Kraken Bitcoin. The crypto trades about -0.17 of its potential returns per unit of risk. The Kraken Bitcoin USD is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 643,500 in Kraken Bitcoin USD on September 23, 2018 and sell it today you would lose (5,110) from holding Kraken Bitcoin USD or give up 0.79% of portfolio value over 30 days.
Pair Corralation between LakeBTC Bitcoin and Kraken Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding LakeBTC Bitcoin USD and Kraken Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken Bitcoin USD and LakeBTC 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 LakeBTC Bitcoin USD are associated (or correlated) with Kraken Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Bitcoin USD has no effect on the direction of LakeBTC Bitcoin i.e. LakeBTC Bitcoin and Kraken Bitcoin go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.