This module allows you to analyze existing cross correlation between Coinroom Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on Coinroom Bitcoin and Bitstamp 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 Coinroom Bitcoin with a short position of Bitstamp Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Coinroom Bitcoin
and Bitstamp Bitcoin
Coinroom Bitcoin USD vs. Bitstamp Bitcoin USD
Assuming 30 trading days horizon, Coinroom Bitcoin USD is expected to generate 1.16 times more return on investment than Bitstamp Bitcoin. However, Coinroom Bitcoin is 1.16 times more volatile than Bitstamp Bitcoin USD. It trades about 0.0 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about -0.02 per unit of risk. If you would invest 992,406 in Coinroom Bitcoin USD on March 24, 2018 and sell it today you would lose (88,123) from holding Coinroom Bitcoin USD or give up 8.88% of portfolio value over 30 days.
Pair Corralation between Coinroom Bitcoin and Bitstamp Bitcoin
|Time Period||2 Months [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Coinroom Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Bitcoin USD and Coinroom 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 Coinroom Bitcoin USD are associated (or correlated) with Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of Coinroom Bitcoin i.e. Coinroom Bitcoin and Bitstamp Bitcoin go up and down completely randomly.
Over the last 30 days Coinroom Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
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