Correlation Analysis Between Bitstamp Ethereum and LocalBitcoins Bitcoin

This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on Bitstamp Ethereum and LocalBitcoins 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 Ethereum with a short position of LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Bitstamp Ethereum and LocalBitcoins Bitcoin.
Horizon     30 Days    Login   to change
Symbolsvs

Bitstamp Ethereum USD  vs.  LocalBitcoins Bitcoin USD

Bitstamp

Ethereum on Bitstamp in USD

 90.29 
(1.24)  1.35%
Market Cap: 52.2 M
  

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 5,076 
(536.74)  9.56%
Market Cap: 2.1 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 6.72 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.27 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest  674,184  in LocalBitcoins Bitcoin USD on November 10, 2018 and sell it today you would lose (166,623)  from holding LocalBitcoins Bitcoin USD or give up 24.71% of portfolio value over 30 days.

Pair Corralation between Bitstamp Ethereum and LocalBitcoins Bitcoin

0.51
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Bitstamp Ethereum USD diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Bitstamp Ethereum USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins Bitcoin 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 LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and LocalBitcoins Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 
Bitstamp Ethereum USD  
0

Risk-Adjusted Performance

Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
LocalBitcoins Bitcoin USD  
10

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 10 (%) of all global equities and portfolios over the last 30 days.

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