Pair Correlation Between BitBay Bitcoin and Abucoins Bitcoin

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

BitBay

Bitcoin on BitBay in USD
 10,760 
(232.77)  2.12%
Market Cap: 1 B
 213.64 

Abucoins

Bitcoin on Abucoins in USD
 10,547 
(259.65)  2.4%
Market Cap: 531.1 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitBay Bitcoin USD is expected to generate 1.18 times more return on investment than Abucoins Bitcoin. However, BitBay Bitcoin is 1.18 times more volatile than Abucoins Bitcoin USD. It trades about -0.11 of its potential returns per unit of risk. Abucoins Bitcoin USD is currently generating about -0.15 per unit of risk. If you would invest  1,456,555  in BitBay Bitcoin USD on December 24, 2017 and sell it today you would lose (357,255)  from holding BitBay Bitcoin USD or give up 24.53% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between BitBay Bitcoin and Abucoins Bitcoin
0.92

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 BitBay Bitcoin USD and Abucoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Abucoins Bitcoin USD and BitBay 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 BitBay Bitcoin USD are associated (or correlated) with Abucoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Abucoins Bitcoin USD has no effect on the direction of BitBay Bitcoin i.e. BitBay Bitcoin and Abucoins Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

BitBay Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Abucoins Bitcoin USD

  
0 

Risk-Adjusted Performance

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