Pair Correlation Between LocalBitcoins Bitcoin and Bitfinex Bitcoin

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

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 18,204 
(8,789)  32.56%
Market Cap: 35.1 B
 1,029 

Bitfinex

Bitcoin on Bitfinex in USD
 17,175 
(40)  0.23%
Market Cap: 11621.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 6.63 times more return on investment than Bitfinex Bitcoin. However, LocalBitcoins Bitcoin is 6.63 times more volatile than Bitfinex Bitcoin USD. It trades about 0.21 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.5 per unit of risk. If you would invest  979,551  in LocalBitcoins Bitcoin USD on November 12, 2017 and sell it today you would earn a total of  858,153  from holding LocalBitcoins Bitcoin USD or generate 87.61% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Bitfinex Bitcoin
0.68

Parameters

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

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and LocalBitcoins 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 LocalBitcoins Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD

  
13 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 13 (%) of all global equities and portfolios over the last 30 days.

Bitfinex Bitcoin USD

  
33 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.