This module allows you to analyze existing cross correlation between LiveCoin Bitcoin USD and itBit Bitcoin USD. You can compare the effects of market volatilities on LiveCoin Bitcoin and itBit 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 LiveCoin Bitcoin with a short position of itBit Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of LiveCoin Bitcoin and itBit Bitcoin.
Assuming 30 trading days horizon, LiveCoin Bitcoin is expected to generate 2.01 times less return on investment than itBit Bitcoin. But when comparing it to its historical volatility, LiveCoin Bitcoin USD is 1.67 times less risky than itBit Bitcoin. It trades about 0.1 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 671,339 in itBit Bitcoin USD on June 20, 2018 and sell it today you would earn a total of 71,530 from holding itBit Bitcoin USD or generate 10.65% return on investment over 30 days.
Pair Corralation between LiveCoin Bitcoin and itBit Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding LiveCoin Bitcoin USD and itBit Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on itBit Bitcoin USD and LiveCoin 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 LiveCoin Bitcoin USD are associated (or correlated) with itBit Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of itBit Bitcoin USD has no effect on the direction of LiveCoin Bitcoin i.e. LiveCoin Bitcoin and itBit Bitcoin go up and down completely randomly.
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