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
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 Kraken Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Bitfinex Bitcoin and Kraken Bitcoin Volatility Contrast
Bitfinex Bitcoin USD vs. Kraken Bitcoin USD
Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to under-perform the Kraken Bitcoin. In addition to that, Bitfinex Bitcoin is 1.05 times more volatile than Kraken Bitcoin USD. It trades about -0.13 of its total potential returns per unit of risk. Kraken Bitcoin USD is currently generating about -0.09 per unit of volatility. If you would invest 453,130 in Kraken Bitcoin USD on December 17, 2018 and sell it today you would lose (93,180) from holding Kraken Bitcoin USD or give up 20.56% of portfolio value over 30 days.
Pair Corralation between Bitfinex Bitcoin and Kraken Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Bitfinex Bitcoin and Kraken Bitcoin
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.