This module allows you to analyze existing cross correlation between Coinbase Ethereum USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on Coinbase Ethereum and Bitstamp 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 Ethereum with a short position of Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinbase Ethereum
and Bitstamp Ethereum
Coinbase Ethereum USD vs. Bitstamp Ethereum USD
Assuming 30 trading days horizon, Coinbase Ethereum USD is expected to under-perform the Bitstamp Ethereum. In addition to that, Coinbase Ethereum is 1.02 times more volatile than Bitstamp Ethereum USD. It trades about -0.07 of its total potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.06 per unit of volatility. If you would invest 86,700 in Bitstamp Ethereum USD on March 27, 2018 and sell it today you would lose (21,169) from holding Bitstamp Ethereum USD or give up 24.42% of portfolio value over 30 days.
Pair Corralation between Coinbase Ethereum and Bitstamp Ethereum
|Time Period||2 Months [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Coinbase Ethereum USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Ethereum USD and Coinbase Ethereum 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 Ethereum USD are associated (or correlated) with Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of Coinbase Ethereum i.e. Coinbase Ethereum and Bitstamp Ethereum go up and down completely randomly.
Over the last 30 days Coinbase Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
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