This module allows you to analyze existing cross correlation between CoinDeal Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on CoinDeal Bitcoin and Kraken 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 CoinDeal Bitcoin with a short position of Kraken Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of CoinDeal Bitcoin and Kraken Bitcoin.
|Horizon||30 Days Login to change|
|CoinDeal Bitcoin USD|
Over the last 30 days CoinDeal Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
|Kraken Bitcoin USD|
Over the last 30 days Kraken Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the entity investors.
CoinDeal Bitcoin and Kraken Bitcoin Volatility Contrast
Predicted Return Density
CoinDeal Bitcoin USD vs. Kraken Bitcoin USD
Assuming 30 trading days horizon, CoinDeal Bitcoin USD is expected to under-perform the Kraken Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, CoinDeal Bitcoin USD is 1.15 times less risky than Kraken Bitcoin. The crypto trades about -0.06 of its potential returns per unit of risk. The Kraken Bitcoin USD is currently generating about -0.03 of returns per unit of risk over similar time horizon. If you would invest 1,186,790 in Kraken Bitcoin USD on July 25, 2019 and sell it today you would lose (172,220) from holding Kraken Bitcoin USD or give up 14.51% of portfolio value over 30 days.
Pair Corralation between CoinDeal Bitcoin and Kraken Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for CoinDeal Bitcoin and Kraken Bitcoin
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding CoinDeal Bitcoin USD and Kraken Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken Bitcoin USD and CoinDeal 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 CoinDeal Bitcoin USD are associated (or correlated) with Kraken Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Bitcoin USD has no effect on the direction of CoinDeal Bitcoin i.e. CoinDeal Bitcoin and Kraken Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.