Pair Correlation Between LocalBitcoins Bitcoin and Coinroom Bitcoin

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

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 26,978 
6,683  32.93%
Market Cap: 33.8 B
 7,820 
28.99% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

Coinroom

Bitcoin on Coinroom in USD
 19,158 
10.88  0.0568%
Market Cap: 738.5 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 7.21 times more return on investment than Coinroom Bitcoin. However, LocalBitcoins Bitcoin is 7.21 times more volatile than Coinroom Bitcoin USD. It trades about 0.28 of its potential returns per unit of risk. Coinroom Bitcoin USD is currently generating about 0.43 per unit of risk. If you would invest  1,164,999  in LocalBitcoins Bitcoin USD on November 17, 2017 and sell it today you would earn a total of  3,433,368  from holding LocalBitcoins Bitcoin USD or generate 294.71% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Coinroom Bitcoin
0.65

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 Coinroom Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinroom 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 Coinroom Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinroom Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Coinroom Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD

  
18 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days.

Coinroom Bitcoin USD

  
28 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinroom Bitcoin USD are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.