Pair Correlation Between LakeBTC Bitcoin and Poloniex Bitcoin

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

LakeBTC

Bitcoin on LakeBTC in USD
 11,659 
684.40  5.54%
Market Cap: 264 B
 727.01 

Poloniex

Bitcoin on Poloniex in USD
 10,932 
767.13  6.56%
Market Cap: 345.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LakeBTC Bitcoin is expected to generate 1.56 times less return on investment than Poloniex Bitcoin. But when comparing it to its historical volatility, LakeBTC Bitcoin USD is 1.08 times less risky than Poloniex Bitcoin. It trades about 0.02 of its potential returns per unit of risk. Poloniex Bitcoin USD is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  1,103,107  in Poloniex Bitcoin USD on January 22, 2018 and sell it today you would lose (4,667)  from holding Poloniex Bitcoin USD or give up 0.42% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between LakeBTC Bitcoin and Poloniex Bitcoin
1.0

Parameters

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

Diversification

No risk reduction

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

Comparative Volatility

 Predicted Return Density 
      Returns 

LakeBTC Bitcoin USD

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

Poloniex Bitcoin USD

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.