This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and LiveCoin Litecoin USD. You can compare the effects of market volatilities on Bitstamp Ethereum and LiveCoin Litecoin 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 Litecoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Bitstamp Ethereum and LiveCoin Litecoin.
Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the LiveCoin Litecoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 1.0 times less risky than LiveCoin Litecoin. The crypto trades about -0.27 of its potential returns per unit of risk. The LiveCoin Litecoin USD is currently generating about -0.27 of returns per unit of risk over similar time horizon. If you would invest 5,281 in LiveCoin Litecoin USD on November 10, 2018 and sell it today you would lose (2,827) from holding LiveCoin Litecoin USD or give up 53.53% of portfolio value over 30 days.
Pair Corralation between Bitstamp Ethereum and LiveCoin Litecoin
Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Ethereum USD and LiveCoin Litecoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LiveCoin Litecoin 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 Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveCoin Litecoin USD has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and LiveCoin Litecoin go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
See also your portfolio center. Please also try Theme Ratings module to determine theme ratings based on digital equity recommendations. macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.