This module allows you to analyze existing cross correlation between Quoine Bitcoin USD and Coinroom Bitcoin USD. You can compare the effects of market volatilities on Quoine Bitcoin and Coinroom 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 Quoine Bitcoin with a short position of Coinroom Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Quoine Bitcoin and Coinroom Bitcoin.
Assuming 30 trading days horizon, Quoine Bitcoin USD is expected to generate 1.18 times more return on investment than Coinroom Bitcoin. However, Quoine Bitcoin is 1.18 times more volatile than Coinroom Bitcoin USD. It trades about -0.3 of its potential returns per unit of risk. Coinroom Bitcoin USD is currently generating about -0.42 per unit of risk. If you would invest 640,472 in Quoine Bitcoin USD on October 20, 2018 and sell it today you would lose (128,672) from holding Quoine Bitcoin USD or give up 20.09% of portfolio value over 30 days.
Pair Corralation between Quoine Bitcoin and Coinroom Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Quoine Bitcoin USD and Coinroom Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinroom Bitcoin USD and Quoine 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 Quoine Bitcoin USD are associated (or correlated) with Coinroom Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinroom Bitcoin USD has no effect on the direction of Quoine Bitcoin i.e. Quoine Bitcoin and Coinroom Bitcoin go up and down completely randomly.
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