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|
Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Crypto's fundamental drivers remain rather sound which may send shares a bit higher in September 2019. The ongoing tumult may also be a sign of longer-term up-swing for the entity shareholders.
|Coinbase Bitcoin USD|
Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of weak performance in the last few months, the Crypto's forward-looking signals remain relatively invariable which may send shares a bit higher in September 2019. The latest agitation may also be a sign of long running up-swing for the entity management.
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. But the crypto apears to be less risky and, when comparing its historical volatility, Bitfinex Bitcoin USD is 1.05 times less risky than Coinbase Bitcoin. The crypto trades about -0.05 of its potential returns per unit of risk. The Coinbase Bitcoin USD is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 1,253,699 in Coinbase Bitcoin USD on July 25, 2019 and sell it today you would lose (217,479) from holding Coinbase Bitcoin USD or give up 17.35% 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
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.
See also your portfolio center. Please also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.