Pair Correlation Between Poloniex Bitcoin and LocalBitcoins Bitcoin

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


Bitcoin on Poloniex in USD
246.58  2.86%
Market Cap: 212.6 B
40.60% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation


Bitcoin on LocalBitcoins in USD
1,331  11.96%
Market Cap: 9.8 B
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Poloniex Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Poloniex Bitcoin USD is 3.9 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.05 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  1,303,724  in LocalBitcoins Bitcoin USD on February 21, 2018 and sell it today you would lose (57,317)  from holding LocalBitcoins Bitcoin USD or give up 4.4% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Poloniex Bitcoin and LocalBitcoins Bitcoin


Time Period1 Month [change]
ValuesDaily Returns


Poor diversification

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

Comparative Volatility

 Predicted Return Density 

Poloniex Bitcoin USD


Risk-Adjusted Performance

Over the last 30 days Poloniex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Poloniex Bitcoin USD

Pair trading matchups for Poloniex Bitcoin

LocalBitcoins Bitcoin USD


Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.

LocalBitcoins Bitcoin USD

Pair trading matchups for LocalBitcoins Bitcoin