Pair Correlation Between Coinbase Bitcoin and Gatecoin Litecoin

This module allows you to analyze existing cross correlation between Coinbase Bitcoin USD and Gatecoin Litecoin USD. You can compare the effects of market volatilities on Coinbase Bitcoin and Gatecoin Litecoin 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 Gatecoin Litecoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Coinbase Bitcoin and Gatecoin Litecoin.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Coinbase Bitcoin USD  vs   Gatecoin Litecoin USD

Coinbase

Bitcoin on Coinbase in USD
 11,542 
62.38  0.54%
Market Cap: 1659.4 B

Gatecoin

Litecoin on Gatecoin in USD
 100 
(150)  60%
Market Cap: 1.5 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 0.43 times more return on investment than Gatecoin Litecoin. However, Coinbase Bitcoin USD is 2.34 times less risky than Gatecoin Litecoin. It trades about -0.2 of its potential returns per unit of risk. Gatecoin Litecoin USD is currently generating about -0.12 per unit of risk. If you would invest  1,783,873  in Coinbase Bitcoin USD on December 18, 2017 and sell it today you would lose (786,290)  from holding Coinbase Bitcoin USD or give up 44.08% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and Gatecoin Litecoin
0.8

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Bitcoin USD and Gatecoin Litecoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gatecoin Litecoin 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 Gatecoin Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gatecoin Litecoin USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Gatecoin Litecoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Bitcoin USD

Pair trading matchups for Coinbase Bitcoin

Gatecoin Litecoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Gatecoin Litecoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Gatecoin Litecoin USD

Pair trading matchups for Gatecoin Litecoin