Correlation Analysis Between LocalBitcoins Bitcoin and itBit Bitcoin

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

Comparative Performance

LocalBitcoins Bitcoin USD  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.
itBit Bitcoin USD  

Risk-Adjusted Performance

Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

LocalBitcoins Bitcoin and itBit Bitcoin Volatility Contrast

 Predicted Return Density 

LocalBitcoins Bitcoin USD  vs.  itBit Bitcoin USD


Bitcoin on LocalBitcoins in USD

554.88  11.92%
Market Cap: 95.1 M


Bitcoin on itBit in USD

37.96  1.18%
Market Cap: 23.6 B
37.61% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 7.4 times more return on investment than itBit Bitcoin. However, LocalBitcoins Bitcoin is 7.4 times more volatile than itBit Bitcoin USD. It trades about 0.14 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about -0.28 per unit of risk. If you would invest  714,385  in LocalBitcoins Bitcoin USD on November 16, 2018 and sell it today you would lose (248,689)  from holding LocalBitcoins Bitcoin USD or give up 34.81% of portfolio value over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and itBit Bitcoin

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for LocalBitcoins Bitcoin and itBit Bitcoin

LocalBitcoins Bitcoin USD diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins 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 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 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 LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and itBit Bitcoin go up and down completely randomly.

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See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.