This module allows you to analyze existing cross correlation between BitTrex Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on BitTrex Bitcoin and Kraken 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 Kraken Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of BitTrex Bitcoin and Kraken Bitcoin.
|Horizon||30 Days Login to change|
|BitTrex Bitcoin USD|
Over the last 30 days BitTrex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Inspite fragile performance in the last few months, the Crypto's basic indicators remain fairly strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
|Kraken Bitcoin USD|
Over the last 30 days Kraken Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
BitTrex Bitcoin and Kraken Bitcoin Volatility Contrast
Predicted Return Density
BitTrex Bitcoin USD vs. Kraken Bitcoin USD
Assuming 30 trading days horizon, BitTrex Bitcoin USD is expected to under-perform the Kraken Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, BitTrex Bitcoin USD is 1.06 times less risky than Kraken Bitcoin. The crypto trades about -0.06 of its potential returns per unit of risk. The Kraken Bitcoin USD is currently generating about -0.05 of returns per unit of risk over similar time horizon. If you would invest 1,232,000 in Kraken Bitcoin USD on July 27, 2019 and sell it today you would lose (225,850) from holding Kraken Bitcoin USD or give up 18.33% of portfolio value over 30 days.
Pair Corralation between BitTrex Bitcoin and Kraken Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for BitTrex Bitcoin and Kraken Bitcoin
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding BitTrex Bitcoin USD and Kraken Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken 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 Kraken Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Bitcoin USD has no effect on the direction of BitTrex Bitcoin i.e. BitTrex Bitcoin and Kraken Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Manager module to state of the art portfolio manager to monitor and improve performance of your invested capital.