This module allows you to analyze existing cross correlation between BitTrex Bitcoin USD and itBit Bitcoin USD. You can compare the effects of market volatilities on BitTrex Bitcoin and itBit 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 BitTrex Bitcoin with a short position of itBit Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of BitTrex Bitcoin
and itBit Bitcoin
Over the last 30 days BitTrex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
BitTrex Bitcoin and itBit Bitcoin Volatility Contrast
BitTrex Bitcoin USD vs. itBit Bitcoin USD
Assuming 30 trading days horizon, BitTrex Bitcoin USD is expected to under-perform the itBit Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, BitTrex Bitcoin USD is 1.27 times less risky than itBit Bitcoin. The crypto trades about -0.14 of its potential returns per unit of risk. The itBit Bitcoin USD is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 440,765 in itBit Bitcoin USD on December 19, 2018 and sell it today you would lose (78,336) from holding itBit Bitcoin USD or give up 17.77% of portfolio value over 30 days.
Pair Corralation between BitTrex Bitcoin and itBit Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for BitTrex Bitcoin and itBit Bitcoin
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Bitcoin USD and itBit Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on itBit Bitcoin 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 itBit Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of itBit Bitcoin USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and itBit Bitcoin go up and down completely randomly.