Pair Correlation Between Bitstamp Bitcoin and Cexio Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 12,386 
631.29  5.37%
Market Cap: 4271.2 B
(705.52)

Cexio

Bitcoin on Cexio in USD
 13,092 
607.02  4.86%
Market Cap: 200.6 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the Cexio Bitcoin. In addition to that, Bitstamp Bitcoin is 1.02 times more volatile than Cexio Bitcoin USD. It trades about -0.04 of its total potential returns per unit of risk. Cexio Bitcoin USD is currently generating about -0.03 per unit of volatility. If you would invest  1,549,110  in Cexio Bitcoin USD on December 21, 2017 and sell it today you would lose (239,929)  from holding Cexio Bitcoin USD or give up 15.49% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and Cexio Bitcoin
0.99

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 Bitstamp Bitcoin USD and Cexio Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cexio 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 Cexio Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cexio Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and Cexio Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Bitstamp Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Bitstamp Bitcoin USD

Pair trading matchups for Bitstamp Bitcoin

Cexio Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Cexio Bitcoin USD

Pair trading matchups for Cexio Bitcoin