This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and HitBTC MaidSafe Coin USD. You can compare the effects of market volatilities on Bitstamp Ethereum and HitBTC MaidSafe 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 HitBTC MaidSafe. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Ethereum
and HitBTC MaidSafe
Bitstamp Ethereum USD vs HitBTC MaidSafe Coin USD
Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the HitBTC MaidSafe. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 1.57 times less risky than HitBTC MaidSafe. The crypto trades about -0.42 of its potential returns per unit of risk. The HitBTC MaidSafe Coin USD is currently generating about -0.14 of returns per unit of risk over similar time horizon. If you would invest 46.24 in HitBTC MaidSafe Coin USD on February 18, 2018 and sell it today you would lose (13.11) from holding HitBTC MaidSafe Coin USD or give up 28.35% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Ethereum USD and HitBTC MaidSafe Coin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC MaidSafe Coin 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 HitBTC MaidSafe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC MaidSafe Coin has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and HitBTC MaidSafe 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 HitBTC MaidSafe Coin USD has generated negative risk-adjusted returns adding no value to investors with long positions.