Pair Correlation Between TheRockTrading Bitcoin and Lykke Bitcoin

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

TheRockTrading

Bitcoin on TheRockTrading in USD
 16,400 
1,500  10.07%
Market Cap: 144.4 K
(200)

Lykke

Bitcoin on Lykke in USD
 16,600 
(99)  0.59%
Market Cap: 1.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, TheRockTrading Bitcoin USD is expected to generate 0.92 times more return on investment than Lykke Bitcoin. However, TheRockTrading Bitcoin USD is 1.08 times less risky than Lykke Bitcoin. It trades about 0.52 of its potential returns per unit of risk. Lykke Bitcoin USD is currently generating about 0.45 per unit of risk. If you would invest  597,086  in TheRockTrading Bitcoin USD on November 11, 2017 and sell it today you would earn a total of  1,042,914  from holding TheRockTrading Bitcoin USD or generate 174.67% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between TheRockTrading Bitcoin and Lykke Bitcoin
0.95

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding TheRockTrading Bitcoin USD and Lykke Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lykke 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 Lykke Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykke Bitcoin USD has no effect on the direction of TheRockTrading Bitcoin i.e. TheRockTrading Bitcoin and Lykke Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

TheRockTrading Bitcoin

  
34 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in TheRockTrading Bitcoin USD are ranked lower than 34 (%) of all global equities and portfolios over the last 30 days.

Lykke Bitcoin USD

  
29 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Lykke Bitcoin USD are ranked lower than 29 (%) of all global equities and portfolios over the last 30 days.