This module allows you to analyze existing cross correlation between Quoine Ethereum USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on Quoine 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 Quoine Ethereum with a short position of Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Quoine Ethereum
and Bitstamp Ethereum
Quoine Ethereum USD vs Bitstamp Ethereum USD
Assuming 30 trading days horizon, Quoine Ethereum is expected to generate 2.21 times less return on investment than Bitstamp Ethereum. But when comparing it to its historical volatility, Quoine Ethereum USD is 1.08 times less risky than Bitstamp Ethereum. It trades about 0.0 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 103,108 in Bitstamp Ethereum USD on January 20, 2018 and sell it today you would lose (8,678) from holding Bitstamp Ethereum USD or give up 8.42% of portfolio value 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 Quoine 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 Quoine 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 Quoine 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 Quoine Ethereum i.e. Quoine Ethereum and Bitstamp Ethereum go up and down completely randomly.
Over the last 30 days Quoine Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.