Pair Correlation Between Bitstamp Bitcoin and Lykke Bitcoin

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

Bitstamp

Bitcoin on Bitstamp in USD
 12,473 
718.13  6.11%
Market Cap: 4271.2 B
(1,233)

Lykke

Bitcoin on Lykke in USD
 13,706 
1,116  8.86%
Market Cap: 625.1 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the Lykke Bitcoin. In addition to that, Bitstamp Bitcoin is 1.16 times more volatile than Lykke Bitcoin USD. It trades about -0.04 of its total potential returns per unit of risk. Lykke Bitcoin USD is currently generating about -0.03 per unit of volatility. If you would invest  1,508,199  in Lykke Bitcoin USD on December 21, 2017 and sell it today you would lose (205,105)  from holding Lykke Bitcoin USD or give up 13.6% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Bitstamp Bitcoin and Lykke Bitcoin
0.48

Parameters

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

Diversification

Very weak diversification

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

Lykke Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Lykke Bitcoin USD

Pair trading matchups for Lykke Bitcoin