Pair Correlation Between Bitfinex Bitcoin and Kraken Bitcoin

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

Bitfinex Bitcoin USD  vs.  Kraken Bitcoin USD

Bitfinex

Bitcoin on Bitfinex in USD
 8,258 
72.10  0.88%
Market Cap: 1738.7 B
  

Kraken

Bitcoin on Kraken in USD
 8,233 
49.10  0.60%
Market Cap: 262.2 B
 25.00 
0.30% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to generate 1.02 times more return on investment than Kraken Bitcoin. However, Bitfinex Bitcoin is 1.02 times more volatile than Kraken Bitcoin USD. It trades about -0.08 of its potential returns per unit of risk. Kraken Bitcoin USD is currently generating about -0.08 per unit of risk. If you would invest  1,107,000  in Bitfinex Bitcoin USD on March 20, 2018 and sell it today you would lose (284,990)  from holding Bitfinex Bitcoin USD or give up 25.74% of portfolio value over 30 days.

Pair Corralation between Bitfinex Bitcoin and Kraken Bitcoin

1.0
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

No risk reduction

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

Comparative Volatility

 Predicted Return Density 
      Returns 
Bitfinex Bitcoin USD  
0 

Risk-Adjusted Performance

Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Kraken Bitcoin USD  
0 

Risk-Adjusted Performance

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

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See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.