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This module allows you to analyze existing cross correlation between Bitfinex Bitcoin USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on Bitfinex 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 Bitfinex Bitcoin with a short position of Coinbase Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Bitfinex Bitcoin and Coinbase Bitcoin.
|Horizon||30 Days Login to change|
|Bitfinex Bitcoin USD|
Bitfinex Bitcoin and Coinbase Bitcoin Volatility Contrast
Predicted Return Density
Bitfinex Bitcoin USD vs. Coinbase Bitcoin USD
Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to under-perform the Coinbase Bitcoin. In addition to that, Bitfinex Bitcoin is 1.09 times more volatile than Coinbase Bitcoin USD. It trades about -0.12 of its total potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.13 per unit of volatility. If you would invest 478,757 in Coinbase Bitcoin USD on December 18, 2018 and sell it today you would lose (116,864) from holding Coinbase Bitcoin USD or give up 24.41% of portfolio value over 30 days.
Pair Corralation between Bitfinex Bitcoin and Coinbase Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Bitfinex Bitcoin and Coinbase Bitcoin
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex 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 Bitfinex 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 Bitfinex 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 Bitfinex Bitcoin i.e. Bitfinex Bitcoin and Coinbase Bitcoin go up and down completely randomly.