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
Compare Efficiency

Comparative Performance

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.
LocalBitcoins Bitcoin USD  
10

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.

Bitstamp Bitcoin and LocalBitcoins Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

Bitstamp Bitcoin USD  vs.  LocalBitcoins Bitcoin USD

Bitstamp

Bitcoin on Bitstamp in USD

 3,810 
118.15  3.20%
Market Cap: 121.4 B
  

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 5,335 
(164.79)  3.00%
Market Cap: 1.2 B
(1,525)
40.03% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Bitcoin USD is 9.26 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.28 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  632,050  in LocalBitcoins Bitcoin USD on November 19, 2018 and sell it today you would lose (82,050)  from holding LocalBitcoins Bitcoin USD or give up 12.98% of portfolio value over 30 days.

Pair Corralation between Bitstamp Bitcoin and LocalBitcoins Bitcoin

0.58
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy97.67%
ValuesDaily Returns

Diversification Opportunities for Bitstamp Bitcoin and LocalBitcoins Bitcoin

Bitstamp Bitcoin USD diversification synergy

Very weak 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.

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