This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and LiveCoin Lisk USD. You can compare the effects of market volatilities on Bitstamp Ethereum and LiveCoin Lisk 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 LiveCoin Lisk. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Ethereum
and LiveCoin Lisk
Bitstamp Ethereum USD vs LiveCoin Lisk USD
Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to generate 0.69 times more return on investment than LiveCoin Lisk. However, Bitstamp Ethereum USD is 1.44 times less risky than LiveCoin Lisk. It trades about -0.33 of its potential returns per unit of risk. LiveCoin Lisk USD is currently generating about -0.29 per unit of risk. If you would invest 81,078 in Bitstamp Ethereum USD on February 21, 2018 and sell it today you would lose (28,416) from holding Bitstamp Ethereum USD or give up 35.05% 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 LiveCoin Lisk USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LiveCoin Lisk USD 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 LiveCoin Lisk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveCoin Lisk USD has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and LiveCoin Lisk 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 LiveCoin Lisk USD has generated negative risk-adjusted returns adding no value to investors with long positions.