Pair Correlation Between BitBay Bitcoin and Coinbase Bitcoin

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

BitBay

Bitcoin on BitBay in USD
 12,550 
707.5  5.97%
Market Cap: 1.2 B
 801.42 

Coinbase

Bitcoin on Coinbase in USD
 11,749 
268.59  2.34%
Market Cap: 1659.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitBay Bitcoin USD is expected to under-perform the Coinbase Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, BitBay Bitcoin USD is 1.31 times less risky than Coinbase Bitcoin. The crypto trades about -0.19 of its potential returns per unit of risk. The Coinbase Bitcoin USD is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  1,695,881  in Coinbase Bitcoin USD on December 19, 2017 and sell it today you would lose (547,882)  from holding Coinbase Bitcoin USD or give up 32.31% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between BitBay Bitcoin and Coinbase Bitcoin
0.98

Parameters

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

Diversification

Almost no diversification

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

BitBay Bitcoin USD

Pair trading matchups for BitBay Bitcoin

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Coinbase Bitcoin USD

Pair trading matchups for Coinbase Bitcoin