Correlation Analysis Between Lykke Bitcoin and itBit Bitcoin

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

Lykke Bitcoin USD  vs.  itBit Bitcoin USD

Lykke

Bitcoin on Lykke in USD
 6,482 
72.23  1.13%
Market Cap: 298.7 K
  

itBit

Bitcoin on itBit in USD
 6,729 
10.41  0.15%
Market Cap: 6.6 B
(246.98)
3.81% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Lykke Bitcoin USD is expected to under-perform the itBit Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Lykke Bitcoin USD is 1.02 times less risky than itBit Bitcoin. The crypto trades about -0.26 of its potential returns per unit of risk. The itBit Bitcoin USD is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest  821,391  in itBit Bitcoin USD on July 23, 2018 and sell it today you would lose (147,493)  from holding itBit Bitcoin USD or give up 17.96% of portfolio value over 30 days.

Pair Corralation between Lykke Bitcoin and itBit Bitcoin

0.66
Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy73.33%
ValuesDaily Returns

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
Lykke Bitcoin USD  
0 

Risk-Adjusted Performance

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

Lykke Bitcoin USD

Pair trading matchups for Lykke Bitcoin
itBit Bitcoin USD  
0 

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.

itBit Bitcoin USD

Pair trading matchups for itBit Bitcoin

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Alphabet
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Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1200.96

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See also your portfolio center. Please also try Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.