Correlation Analysis Between OKCoin Bitcoin and Liquid Ethereum

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

Comparative Performance

OKCoin Bitcoin USD  
00

Risk-Adjusted Performance

Over the last 30 days OKCoin Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat fragile basic indicators, OKCoin Bitcoin sustained solid returns over the last few months and may actually be approaching a breakup point.
Liquid Ethereum USD  
00

Risk-Adjusted Performance

Over the last 30 days Liquid Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat fragile basic indicators, Liquid Ethereum sustained solid returns over the last few months and may actually be approaching a breakup point.

OKCoin Bitcoin and Liquid Ethereum Volatility Contrast

OKCoin Bitcoin USD  vs.  Liquid Ethereum USD

OKCoin

Bitcoin on OKCoin in USD

 10,295 
433.25  4.39%
Market Cap: 29.2 B
  

Liquid

Ethereum on Liquid in USD

 222.95 
19.01  9.32%
Market Cap: 60 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, OKCoin Bitcoin is expected to generate 2.12 times less return on investment than Liquid Ethereum. But when comparing it to its historical volatility, OKCoin Bitcoin USD is 2.12 times less risky than Liquid Ethereum. It trades about 0.71 of its potential returns per unit of risk. Liquid Ethereum USD is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest  20,394  in Liquid Ethereum USD on August 20, 2019 and sell it today you would earn a total of  1,901  from holding Liquid Ethereum USD or generate 9.32% return on investment over 30 days.

Pair Corralation between OKCoin Bitcoin and Liquid Ethereum

0.0
Time Period3 Months [change]
DirectionFlat 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for OKCoin Bitcoin and Liquid Ethereum

OKCoin Bitcoin USD diversification synergy

Pay attention

Overlapping area represents the amount of risk that can be diversified away by holding OKCoin Bitcoin USD and Liquid Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Liquid Ethereum USD and OKCoin 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 OKCoin Bitcoin USD are associated (or correlated) with Liquid Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquid Ethereum USD has no effect on the direction of OKCoin Bitcoin i.e. OKCoin Bitcoin and Liquid Ethereum go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.


 
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