This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and Bitfinex Recovery Right Tokens USD. You can compare the effects of market volatilities on Bitstamp Ethereum and Bitfinex Recovery 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 Ethereum with a short position of Bitfinex Recovery. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Ethereum
and Bitfinex Recovery
Bitstamp Ethereum USD vs Bitfinex Recovery Right Tokens
Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the Bitfinex Recovery. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 2.25 times less risky than Bitfinex Recovery. The crypto trades about -0.34 of its potential returns per unit of risk. The Bitfinex Recovery Right Tokens USD is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 7.50 in Bitfinex Recovery Right Tokens USD on February 19, 2018 and sell it today you would lose (2.41) from holding Bitfinex Recovery Right Tokens USD or give up 32.18% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Ethereum USD and Bitfinex Recovery Right Tokens in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Recovery Right and Bitstamp Ethereum 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 Ethereum USD are associated (or correlated) with Bitfinex Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Recovery Right has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and Bitfinex Recovery go up and down completely randomly.
Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex Recovery Right Tokens USD has generated negative risk-adjusted returns adding no value to investors with long positions.