Pair Correlation Between Coinbase Bitcoin and Kraken ZCash

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

Coinbase

Bitcoin on Coinbase in USD
 18,900 
(450.02)  2.33%
Market Cap: 7461.7 B

Kraken

ZCash on Kraken in USD
 526 
44.5  9.24%
Market Cap: 145.3 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 1.36 times more return on investment than Kraken ZCash. However, Coinbase Bitcoin is 1.36 times more volatile than Kraken ZCash USD. It trades about 0.36 of its potential returns per unit of risk. Kraken ZCash USD is currently generating about 0.33 per unit of risk. If you would invest  803,305  in Coinbase Bitcoin USD on November 18, 2017 and sell it today you would earn a total of  1,099,444  from holding Coinbase Bitcoin USD or generate 136.87% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and Kraken ZCash
0.65

Parameters

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

Diversification

Poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Coinbase Bitcoin USD

  
23 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Bitcoin USD are ranked lower than 23 (%) of all global equities and portfolios over the last 30 days.

Kraken ZCash USD

  
21 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken ZCash USD are ranked lower than 21 (%) of all global equities and portfolios over the last 30 days.