This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and Bitfinex NEO USD. You can compare the effects of market volatilities on Coinbase Bitcoin and Bitfinex NEO 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 Coinbase Bitcoin with a short position of Bitfinex NEO. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Bitcoin
and Bitfinex NEO
Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex NEO USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Coinbase Bitcoin and Bitfinex NEO Volatility Contrast
Coinbase Bitcoin USD vs. Bitfinex NEO USD
Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 0.66 times more return on investment than Bitfinex NEO. However, Coinbase Bitcoin USD is 1.5 times less risky than Bitfinex NEO. It trades about -0.32 of its potential returns per unit of risk. Bitfinex NEO USD is currently generating about -0.33 per unit of risk. If you would invest 639,530 in Coinbase Bitcoin USD on November 17, 2018 and sell it today you would lose (297,826) from holding Coinbase Bitcoin USD or give up 46.57% of portfolio value over 30 days.
Pair Corralation between Coinbase Bitcoin and Bitfinex NEO
|Time Period||2 Months [change]|
Diversification Opportunities for Coinbase Bitcoin and Bitfinex NEO
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and Bitfinex NEO USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex NEO USD and Coinbase 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 Coinbase Bitcoin USD are associated (or correlated) with Bitfinex NEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex NEO USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Bitfinex NEO go up and down completely randomly.