Pair Correlation Between Poloniex Bitcoin and Bitstamp Bitcoin

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

Poloniex

Bitcoin on Poloniex in USD
 17,348 
948  5.78%
Market Cap: 259.1 B
 198 

Bitstamp

Bitcoin on Bitstamp in USD
 17,150 
749.9  4.57%
Market Cap: 3049.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Poloniex Bitcoin USD is expected to generate 0.86 times more return on investment than Bitstamp Bitcoin. However, Poloniex Bitcoin USD is 1.16 times less risky than Bitstamp Bitcoin. It trades about 0.46 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about 0.38 per unit of risk. If you would invest  781,000  in Poloniex Bitcoin USD on November 15, 2017 and sell it today you would earn a total of  953,800  from holding Poloniex Bitcoin USD or generate 122.13% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Poloniex Bitcoin and Bitstamp Bitcoin
0.97

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Poloniex Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp 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 Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of Poloniex Bitcoin i.e. Poloniex Bitcoin and Bitstamp Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Poloniex Bitcoin USD

  
30 

Risk-Adjusted Performance

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

Bitstamp Bitcoin USD

  
24 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Bitcoin USD are ranked lower than 24 (%) of all global equities and portfolios over the last 30 days.