Correlation Analysis Between BitTrex Bitcoin and Coinbase Ethereum

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

Comparative Performance

BitTrex Bitcoin USD  
1818

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Bitcoin USD are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days. Inspite fairly fragile basic indicators, BitTrex Bitcoin showed solid returns over the last few months and may actually be approaching a breakup point.
Coinbase Ethereum USD  
1515

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Coinbase Ethereum reported solid returns over the last few months and may actually be approaching a breakup point.

BitTrex Bitcoin and Coinbase Ethereum Volatility Contrast

 Predicted Return Density 
      Returns 

BitTrex Bitcoin USD  vs.  Coinbase Ethereum USD

BitTrex

Bitcoin on BitTrex in USD

 8,839 
182.81  2.11%
Market Cap: 29 B
  

Coinbase

Ethereum on Coinbase in USD

 274.90 
6.32  2.35%
Market Cap: 5.7 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, BitTrex Bitcoin USD is expected to generate 0.94 times more return on investment than Coinbase Ethereum. However, BitTrex Bitcoin USD is 1.06 times less risky than Coinbase Ethereum. It trades about 0.27 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about 0.22 per unit of risk. If you would invest  528,465  in BitTrex Bitcoin USD on May 18, 2019 and sell it today you would earn a total of  355,403  from holding BitTrex Bitcoin USD or generate 67.25% return on investment over 30 days.

Pair Corralation between BitTrex Bitcoin and Coinbase Ethereum

0.96
Time Period2 Months [change]
DirectionPositive 
StrengthVery Strong
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for BitTrex Bitcoin and Coinbase Ethereum

BitTrex Bitcoin USD diversification synergy

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Bitcoin USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Ethereum USD and BitTrex Bitcoin 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 BitTrex Bitcoin USD are associated (or correlated) with Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and Coinbase Ethereum go up and down completely randomly.
See also your portfolio center. Please also try Price Transformation module to use price transformation models to analyze depth of different equity instruments across global markets.


 
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