Correlation Analysis Between Bitfinex Bitcoin and LocalBitcoins Bitcoin

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

Comparative Performance

Bitfinex Bitcoin USD  

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 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.
LocalBitcoins Bitcoin USD  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.

Bitfinex Bitcoin and LocalBitcoins Bitcoin Volatility Contrast

 Predicted Return Density 

Bitfinex Bitcoin USD  vs.  LocalBitcoins Bitcoin USD


Bitcoin on Bitfinex in USD

(292.03)  2.82%
Market Cap: 624.7 B


Bitcoin on LocalBitcoins in USD

(1,914)  15.50%
Market Cap: 876.2 M
3.63% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitfinex Bitcoin USD is 2.98 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.06 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  1,614,820  in LocalBitcoins Bitcoin USD on July 25, 2019 and sell it today you would lose (571,037)  from holding LocalBitcoins Bitcoin USD or give up 35.36% of portfolio value over 30 days.

Pair Corralation between Bitfinex Bitcoin and LocalBitcoins Bitcoin

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Bitfinex Bitcoin and LocalBitcoins Bitcoin

Bitfinex Bitcoin USD diversification synergy

Poor diversification

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