This module allows you to analyze existing cross correlation between Cexio Bitcoin USD and LakeBTC Bitcoin USD. You can compare the effects of market volatilities on Cexio Bitcoin and LakeBTC 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 Cexio Bitcoin with a short position of LakeBTC Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Cexio Bitcoin and LakeBTC Bitcoin.
Assuming 30 trading days horizon, Cexio Bitcoin USD is expected to generate 1.24 times more return on investment than LakeBTC Bitcoin. However, Cexio Bitcoin is 1.24 times more volatile than LakeBTC Bitcoin USD. It trades about 0.06 of its potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about 0.02 per unit of risk. If you would invest 640,980 in Cexio Bitcoin USD on September 19, 2018 and sell it today you would earn a total of 14,270 from holding Cexio Bitcoin USD or generate 2.23% return on investment over 30 days.
Pair Corralation between Cexio Bitcoin and LakeBTC Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Cexio Bitcoin USD and LakeBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LakeBTC Bitcoin USD and Cexio 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 Cexio Bitcoin USD are associated (or correlated) with LakeBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeBTC Bitcoin USD has no effect on the direction of Cexio Bitcoin i.e. Cexio Bitcoin and LakeBTC Bitcoin go up and down completely randomly.
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