Pair Correlation Between Poloniex Bitcoin and LakeBTC Bitcoin

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

Poloniex

Bitcoin on Poloniex in USD
 19,016 
(104)  0.54%
Market Cap: 581.1 B
(256.94)

LakeBTC

Bitcoin on LakeBTC in USD
 19,273 
90.08  0.47%
Market Cap: 254.8 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Poloniex Bitcoin is expected to generate 1.0 times less return on investment than LakeBTC Bitcoin. But when comparing it to its historical volatility, Poloniex Bitcoin USD is 1.19 times less risky than LakeBTC Bitcoin. It trades about 0.52 of its potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about 0.44 of returns per unit of risk over similar time horizon. If you would invest  788,298  in LakeBTC Bitcoin USD on November 17, 2017 and sell it today you would earn a total of  1,190,926  from holding LakeBTC Bitcoin USD or generate 151.08% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Poloniex Bitcoin and LakeBTC Bitcoin
0.99

Parameters

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

Diversification

No risk reduction

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Poloniex Bitcoin USD

  
34 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 34 (%) of all global equities and portfolios over the last 30 days.

LakeBTC Bitcoin USD

  
28 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 28 (%) of all global equities and portfolios over the last 30 days.