This module allows you to analyze existing cross correlation between Bitstamp Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on Bitstamp Bitcoin and Kraken 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 Kraken Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Bitcoin
and Kraken Bitcoin
Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Kraken Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Bitstamp Bitcoin and Kraken Bitcoin Volatility Contrast
Bitstamp Bitcoin USD vs. Kraken Bitcoin USD
Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the Kraken Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Bitcoin USD is 1.29 times less risky than Kraken Bitcoin. The crypto trades about -0.42 of its potential returns per unit of risk. The Kraken Bitcoin USD is currently generating about -0.32 of returns per unit of risk over similar time horizon. If you would invest 644,250 in Kraken Bitcoin USD on November 15, 2018 and sell it today you would lose (330,490) from holding Kraken Bitcoin USD or give up 51.3% of portfolio value over 30 days.
Pair Corralation between Bitstamp Bitcoin and Kraken Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Bitstamp Bitcoin and Kraken Bitcoin
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Bitcoin USD and Kraken Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken 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 Kraken Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and Kraken Bitcoin go up and down completely randomly.