Pair Correlation Between LocalBitcoins Bitcoin and Gatecoin Bitcoin

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

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 28,544 
11,088  63.52%
Market Cap: 33.8 B
 9,060 
31.74% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

Gatecoin

Bitcoin on Gatecoin in USD
 19,484 
1,823  10.32%
Market Cap: 167.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 6.44 times more return on investment than Gatecoin Bitcoin. However, LocalBitcoins Bitcoin is 6.44 times more volatile than Gatecoin Bitcoin USD. It trades about 0.22 of its potential returns per unit of risk. Gatecoin Bitcoin USD is currently generating about 0.43 per unit of risk. If you would invest  1,143,903  in LocalBitcoins Bitcoin USD on November 16, 2017 and sell it today you would earn a total of  1,199,076  from holding LocalBitcoins Bitcoin USD or generate 104.82% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Gatecoin Bitcoin
0.67

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

Comparative Volatility

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD

  
14 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 14 (%) of all global equities and portfolios over the last 30 days.

Gatecoin Bitcoin USD

  
28 

Risk-Adjusted Performance

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