Pair Correlation Between Quoine Bitcoin and LocalBitcoins Bitcoin

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

Quoine

Bitcoin on Quoine in USD
 9,672 
776.35  7.43%
Market Cap: 38.4 B
(3,508)
36.27% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 13,181 
1,247  8.64%
Market Cap: 4.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Quoine Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Quoine Bitcoin USD is 6.06 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.03 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest  1,555,500  in LocalBitcoins Bitcoin USD on January 25, 2018 and sell it today you would lose (274,237)  from holding LocalBitcoins Bitcoin USD or give up 17.63% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Quoine Bitcoin and LocalBitcoins Bitcoin
0.26

Parameters

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

Diversification

Modest diversification

Overlapping area represents the amount of risk that can be diversified away by holding Quoine 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 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 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 Quoine Bitcoin i.e. Quoine Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Quoine Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Quoine Bitcoin USD

Pair trading matchups for Quoine Bitcoin

LocalBitcoins Bitcoin USD

  
8 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

LocalBitcoins Bitcoin USD

Pair trading matchups for LocalBitcoins Bitcoin