This module allows you to analyze existing cross correlation between Bitstamp Ethereum USD and Poloniex Monero USD. You can compare the effects of market volatilities on Bitstamp Ethereum and Poloniex Monero 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 Poloniex Monero. See also your portfolio center
. Please also check ongoing floating volatility patterns of Bitstamp Ethereum
and Poloniex Monero
Bitstamp Ethereum USD vs Poloniex Monero USD
Assuming 30 trading days horizon, Bitstamp Ethereum USD is expected to under-perform the Poloniex Monero. But the crypto apears to be less risky and, when comparing its historical volatility, Bitstamp Ethereum USD is 1.73 times less risky than Poloniex Monero. The crypto trades about -0.42 of its potential returns per unit of risk. The Poloniex Monero USD is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 30,076 in Poloniex Monero USD on February 17, 2018 and sell it today you would lose (8,926) from holding Poloniex Monero USD or give up 29.68% 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 Poloniex Monero USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Monero 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 Poloniex Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Monero USD has no effect on the direction of Bitstamp Ethereum i.e. Bitstamp Ethereum and Poloniex Monero 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 Poloniex Monero USD has generated negative risk-adjusted returns adding no value to investors with long positions.