This module allows you to analyze existing cross correlation between Poloniex Ethereum USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on Poloniex Ethereum and Bitstamp Ethereum 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 Ethereum with a short position of Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Poloniex Ethereum
and Bitstamp Ethereum
Poloniex Ethereum USD vs Bitstamp Ethereum USD
Assuming 30 trading days horizon, Poloniex Ethereum is expected to generate 1.01 times less return on investment than Bitstamp Ethereum. But when comparing it to its historical volatility, Poloniex Ethereum USD is 1.16 times less risky than Bitstamp Ethereum. It trades about 0.36 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 33,173 in Bitstamp Ethereum USD on November 16, 2017 and sell it today you would earn a total of 34,777 from holding Bitstamp Ethereum USD or generate 104.84% 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 Ethereum USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Ethereum USD and Poloniex Ethereum 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 Ethereum USD are associated (or correlated) with Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of Poloniex Ethereum i.e. Poloniex Ethereum and Bitstamp Ethereum go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Ethereum USD are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Ethereum USD are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.