Correlation Analysis 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.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

Bitfinex Bitcoin USD  
00

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. In spite of rather sound fundamental drivers, Bitfinex Bitcoin is not utilizing all of its potentials. The current stock price tumult, may contribute to shorter-term losses for the shareholders.
Kraken Bitcoin USD  
00

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. Despite somewhat strong basic indicators, Kraken Bitcoin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.

Bitfinex Bitcoin and Kraken Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

Bitfinex Bitcoin USD  vs.  Kraken Bitcoin USD

Bitfinex

Bitcoin on Bitfinex in USD

 10,400 
273.00  2.70%
Market Cap: 624.7 B
  

Kraken

Bitcoin on Kraken in USD

 10,424 
259.20  2.55%
Market Cap: 445.8 B
(24.00)
0.23% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to under-perform the Kraken 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 Kraken Bitcoin. The crypto trades about -0.01 of its potential returns per unit of risk. The Kraken Bitcoin USD is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest  1,167,570  in Kraken Bitcoin USD on July 24, 2019 and sell it today you would lose (127,940)  from holding Kraken Bitcoin USD or give up 10.96% of portfolio value over 30 days.

Pair Corralation between Bitfinex Bitcoin and Kraken Bitcoin

0.91
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Bitfinex Bitcoin and Kraken Bitcoin

Bitfinex Bitcoin USD diversification synergy

Almost no diversification

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.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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