Pair Correlation Between Bitstamp Bitcoin and Gemini Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 10,492 
(3,428)  24.63%
Market Cap: 3388.8 B
 162.03 

Gemini

Bitcoin on Gemini in USD
 10,330 
(3,510)  25.36%
Market Cap: 970.3 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to generate 1.09 times more return on investment than Gemini Bitcoin. However, Bitstamp Bitcoin is 1.09 times more volatile than Gemini Bitcoin USD. It trades about -0.2 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about -0.23 per unit of risk. If you would invest  1,880,052  in Bitstamp Bitcoin USD on December 18, 2017 and sell it today you would lose (830,849)  from holding Bitstamp Bitcoin USD or give up 44.19% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and Gemini Bitcoin
0.96

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification

Almost no diversification

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

Gemini Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Gemini Bitcoin USD

Pair trading matchups for Gemini Bitcoin