This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and BitTrex Ethereum Classic USD. You can compare the effects of market volatilities on Coinbase Bitcoin and BitTrex 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 Coinbase Bitcoin with a short position of BitTrex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Bitcoin
and BitTrex Ethereum
Coinbase Bitcoin USD vs BitTrex Ethereum Classic USD
Assuming 30 trading days horizon, Coinbase Bitcoin is expected to generate 9.4 times less return on investment than BitTrex Ethereum. But when comparing it to its historical volatility, Coinbase Bitcoin USD is 1.58 times less risky than BitTrex Ethereum. It trades about 0.03 of its potential returns per unit of risk. BitTrex Ethereum Classic USD is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 2,800 in BitTrex Ethereum Classic USD on January 22, 2018 and sell it today you would earn a total of 940.00 from holding BitTrex Ethereum Classic USD or generate 33.57% return on investment over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and BitTrex Ethereum Classic USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Ethereum Cla 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 BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum Cla has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and BitTrex Ethereum go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Bitcoin USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in BitTrex Ethereum Classic USD are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.