Pair Correlation Between Coinbase Bitcoin and Poloniex Stellar

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

Coinbase

Bitcoin on Coinbase in USD
 10,183 
233.11  2.34%
Market Cap: 1783.9 B

Poloniex

Stellar on Poloniex in USD
 0.36 
0.0189  5.48%
Market Cap: 2.7 M
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Coinbase Bitcoin USD is expected to generate 0.85 times more return on investment than Poloniex Stellar. However, Coinbase Bitcoin USD is 1.18 times less risky than Poloniex Stellar. It trades about -0.01 of its potential returns per unit of risk. Poloniex Stellar USD is currently generating about -0.19 per unit of risk. If you would invest  1,125,300  in Coinbase Bitcoin USD on January 24, 2018 and sell it today you would lose (90,302)  from holding Coinbase Bitcoin USD or give up 8.02% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Coinbase Bitcoin and Poloniex Stellar
0.61

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 Poloniex Stellar USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Stellar 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 Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Stellar USD has no effect on the direction of Coinbase Bitcoin i.e. Coinbase Bitcoin and Poloniex Stellar 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.

Poloniex Stellar USD

  
0 

Risk-Adjusted Performance

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