Correlation Analysis Between Bitstamp Bitcoin and LocalBitcoins Bitcoin

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

Comparative Performance

Bitstamp Bitcoin USD  
22

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Bitstamp Bitcoin USD are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days. Even with considerably weak technical indicators, Bitstamp Bitcoin revealed solid returns over the last few months and may actually be approaching a breakup point.
LocalBitcoins Bitcoin USD  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.

Bitstamp Bitcoin and LocalBitcoins Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

Bitstamp Bitcoin USD  vs.  LocalBitcoins Bitcoin USD

Bitstamp

Bitcoin on Bitstamp in USD

 10,802 
0.05  0.0005%
Market Cap: 337.9 B
  

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 11,310 
(2,440)  17.75%
Market Cap: 876.2 M
(508.51)
4.71% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin is expected to generate 7.07 times less return on investment than LocalBitcoins Bitcoin. But when comparing it to its historical volatility, Bitstamp Bitcoin USD is 2.87 times less risky than LocalBitcoins Bitcoin. It trades about 0.04 of its potential returns per unit of risk. LocalBitcoins Bitcoin USD is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest  968,148  in LocalBitcoins Bitcoin USD on July 21, 2019 and sell it today you would earn a total of  162,866  from holding LocalBitcoins Bitcoin USD or generate 16.82% return on investment over 30 days.

Pair Corralation between Bitstamp Bitcoin and LocalBitcoins Bitcoin

0.62
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Bitstamp Bitcoin and LocalBitcoins Bitcoin

Bitstamp Bitcoin USD diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins 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 LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Arbitrage module to find pairs of digital assets on multiple exchanges that are traded at a risk free arbitrage.


 
Search macroaxis.com