Pair Correlation Between Coinbase Bitcoin and Poloniex Bitcoin

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

Coinbase

Bitcoin on Coinbase in USD
 11,151 
(178.98)  1.58%
Market Cap: 1659.4 B
 56.82 

Poloniex

Bitcoin on Poloniex in USD
 11,094 
124.39  1.13%
Market Cap: 1567.7 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to under-perform the Poloniex Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Coinbase Bitcoin USD is 1.05 times less risky than Poloniex Bitcoin. The crypto trades about -0.12 of its potential returns per unit of risk. The Poloniex Bitcoin USD is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest  1,652,875  in Poloniex Bitcoin USD on December 20, 2017 and sell it today you would lose (543,455)  from holding Poloniex Bitcoin USD or give up 32.88% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and Poloniex Bitcoin
1.0

Parameters

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

Diversification

No risk reduction

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

Poloniex Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Poloniex Bitcoin USD

Pair trading matchups for Poloniex Bitcoin