This module allows you to analyze existing cross correlation between Poloniex Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on Poloniex Bitcoin and Bitfinex 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 Poloniex Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Poloniex Bitcoin
and Bitfinex Bitcoin
Poloniex Bitcoin USD vs Bitfinex Bitcoin USD
Assuming 30 trading days horizon, Poloniex Bitcoin is expected to generate 1.01 times less return on investment than Bitfinex Bitcoin. But when comparing it to its historical volatility, Poloniex Bitcoin USD is 1.13 times less risky than Bitfinex Bitcoin. It trades about 0.51 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about 0.45 of returns per unit of risk over similar time horizon. If you would invest 772,470 in Bitfinex Bitcoin USD on November 16, 2017 and sell it today you would earn a total of 1,125,230 from holding Bitfinex Bitcoin USD or generate 145.67% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Poloniex Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Poloniex 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 Poloniex Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Poloniex Bitcoin i.e. Poloniex Bitcoin and Bitfinex Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Bitfinex Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.