This module allows you to analyze existing cross correlation between Bitstamp Bitcoin USD and Poloniex Bitcoin USD. You can compare the effects of market volatilities on Bitstamp Bitcoin and Poloniex 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 Poloniex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Bitcoin
and Poloniex Bitcoin
Bitstamp Bitcoin USD vs Poloniex Bitcoin USD
Assuming 30 trading days horizon, Bitstamp Bitcoin USD is expected to under-perform the Poloniex Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Bitcoin USD is 1.06 times less risky than Poloniex Bitcoin. The crypto trades about -0.04 of its potential returns per unit of risk. The Poloniex Bitcoin USD is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,265,726 in Poloniex Bitcoin USD on December 23, 2017 and sell it today you would lose (92,787) from holding Poloniex Bitcoin USD or give up 7.33% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Bitcoin USD and Poloniex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex 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 Poloniex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Bitcoin USD has no effect on the direction of Bitstamp Bitcoin i.e. Bitstamp Bitcoin and Poloniex Bitcoin go up and down completely randomly.
Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.