Pair Correlation Between Poloniex Bitcoin and Gemini Bitcoin

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

Poloniex

Bitcoin on Poloniex in USD
 15,822 
(521.85)  3.19%
Market Cap: 259.1 B
(1,440)

Gemini

Bitcoin on Gemini in USD
 17,262 
(51.3)  0.3%
Market Cap: 2630.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Poloniex Bitcoin is expected to generate 1.1 times less return on investment than Gemini Bitcoin. But when comparing it to its historical volatility, Poloniex Bitcoin USD is 1.05 times less risky than Gemini Bitcoin. It trades about 0.49 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about 0.52 of returns per unit of risk over similar time horizon. If you would invest  660,013  in Gemini Bitcoin USD on November 13, 2017 and sell it today you would earn a total of  1,047,992  from holding Gemini Bitcoin USD or generate 158.78% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Poloniex Bitcoin and Gemini Bitcoin
0.89

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy96.77%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Poloniex Bitcoin USD

  
32 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 32 (%) of all global equities and portfolios over the last 30 days.

Poloniex Bitcoin USD

Pair trading matchups for Poloniex Bitcoin

Gemini Bitcoin USD

  
33 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Gemini Bitcoin USD are ranked lower than 33 (%) of all global equities and portfolios over the last 30 days.

Gemini Bitcoin USD

Pair trading matchups for Gemini Bitcoin