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This module allows you to analyze existing cross correlation between Bitstamp Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on Bitstamp Bitcoin and Bitfinex 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 Bitstamp Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Bitstamp Bitcoin and Bitfinex Bitcoin.
|Horizon||30 Days Login to change|
|Bitstamp Bitcoin USD|
Bitstamp Bitcoin and Bitfinex Bitcoin Volatility Contrast
Predicted Return Density
Bitstamp Bitcoin USD vs. Bitfinex Bitcoin USD
Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the Bitfinex Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Bitcoin USD is 1.21 times less risky than Bitfinex Bitcoin. The crypto trades about -0.41 of its potential returns per unit of risk. The Bitfinex Bitcoin USD is currently generating about -0.34 of returns per unit of risk over similar time horizon. If you would invest 673,600 in Bitfinex Bitcoin USD on November 15, 2018 and sell it today you would lose (339,770) from holding Bitfinex Bitcoin USD or give up 50.44% of portfolio value over 30 days.
Pair Corralation between Bitstamp Bitcoin and Bitfinex Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Bitstamp Bitcoin and Bitfinex Bitcoin
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Bitstamp 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 Bitstamp Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and Bitfinex Bitcoin go up and down completely randomly.