This module allows you to analyze existing cross correlation between Bitfinex Bitcoin USD and Gatecoin Bitcoin USD. You can compare the effects of market volatilities on Bitfinex Bitcoin and Gatecoin 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 Gatecoin Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitfinex Bitcoin
and Gatecoin Bitcoin
Bitfinex Bitcoin USD vs Gatecoin Bitcoin USD
Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to generate 1.43 times more return on investment than Gatecoin Bitcoin. However, Bitfinex Bitcoin is 1.43 times more volatile than Gatecoin Bitcoin USD. It trades about -0.12 of its potential returns per unit of risk. Gatecoin Bitcoin USD is currently generating about -0.2 per unit of risk. If you would invest 1,734,500 in Bitfinex Bitcoin USD on December 18, 2017 and sell it today you would lose (637,500) from holding Bitfinex Bitcoin USD or give up 36.75% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitfinex Bitcoin USD and Gatecoin Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gatecoin 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 Gatecoin Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatecoin Bitcoin USD has no effect on the direction of Bitfinex Bitcoin i.e. Bitfinex Bitcoin and Gatecoin Bitcoin go up and down completely randomly.
Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Gatecoin Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.