This module allows you to analyze existing cross correlation between LiveCoin Ethereum USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on LiveCoin Ethereum and Bitstamp Ethereum 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 Ethereum with a short position of Bitstamp Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of LiveCoin Ethereum and Bitstamp Ethereum.
Assuming 30 trading days horizon, LiveCoin Ethereum USD is expected to generate 0.83 times more return on investment than Bitstamp Ethereum. However, LiveCoin Ethereum USD is 1.21 times less risky than Bitstamp Ethereum. It trades about -0.31 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.42 per unit of risk. If you would invest 44,730 in LiveCoin Ethereum USD on July 22, 2018 and sell it today you would lose (15,551) from holding LiveCoin Ethereum USD or give up 34.77% of portfolio value over 30 days.
Pair Corralation between LiveCoin Ethereum and Bitstamp Ethereum
Overlapping area represents the amount of risk that can be diversified away by holding LiveCoin Ethereum USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Ethereum USD and LiveCoin Ethereum 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 Ethereum USD are associated (or correlated) with Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of LiveCoin Ethereum i.e. LiveCoin Ethereum and Bitstamp Ethereum go up and down completely randomly.
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