This module allows you to analyze existing cross correlation between TheRockTrading Bitcoin USD and LakeBTC Bitcoin USD. You can compare the effects of market volatilities on TheRockTrading Bitcoin and LakeBTC 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 TheRockTrading Bitcoin with a short position of LakeBTC Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of TheRockTrading Bitcoin
and LakeBTC Bitcoin
TheRockTrading Bitcoin USD vs LakeBTC Bitcoin USD
Assuming 30 trading days horizon, TheRockTrading Bitcoin USD is expected to generate 1.12 times more return on investment than LakeBTC Bitcoin. However, TheRockTrading Bitcoin is 1.12 times more volatile than LakeBTC Bitcoin USD. It trades about 0.41 of its potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about 0.38 per unit of risk. If you would invest 637,296 in TheRockTrading Bitcoin USD on November 10, 2017 and sell it today you would earn a total of 922,604 from holding TheRockTrading Bitcoin USD or generate 144.77% return on investment over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding TheRockTrading Bitcoin USD and LakeBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LakeBTC Bitcoin USD and TheRockTrading 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 TheRockTrading Bitcoin USD are associated (or correlated) with LakeBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeBTC Bitcoin USD has no effect on the direction of TheRockTrading Bitcoin i.e. TheRockTrading Bitcoin and LakeBTC Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in TheRockTrading Bitcoin USD are ranked lower than 26 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 25 (%) of all global equities and portfolios over the last 30 days.