Pair Correlation Between Bitfinex Bitcoin and Poloniex Bitcoin

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

Bitfinex

Bitcoin on Bitfinex in USD
 9,830 
(429.1)  4.18%
Market Cap: 11350.4 B
 274.9 

Poloniex

Bitcoin on Poloniex in USD
 9,555 
(700.08)  6.83%
Market Cap: 1568.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitfinex Bitcoin USD is expected to generate 1.05 times more return on investment than Poloniex Bitcoin. However, Bitfinex Bitcoin is 1.05 times more volatile than Poloniex Bitcoin USD. It trades about -0.14 of its potential returns per unit of risk. Poloniex Bitcoin USD is currently generating about -0.19 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 (705,800)  from holding Bitfinex Bitcoin USD or give up 40.69% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitfinex Bitcoin and Poloniex Bitcoin
1.0

Parameters

Time Period1 Month [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 Poloniex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex 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 Poloniex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Bitcoin USD has no effect on the direction of Bitfinex Bitcoin i.e. Bitfinex Bitcoin and Poloniex 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.

Bitfinex Bitcoin USD

Pair trading matchups for Bitfinex Bitcoin

Poloniex Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Poloniex Bitcoin USD

Pair trading matchups for Poloniex Bitcoin