This module allows you to analyze existing cross correlation between Coinroom Bitcoin USD and Exmo Bitcoin USD. You can compare the effects of market volatilities on Coinroom Bitcoin and Exmo 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 Exmo Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Coinroom Bitcoin and Exmo Bitcoin.
Assuming 30 trading days horizon, Coinroom Bitcoin USD is expected to generate 1.23 times more return on investment than Exmo Bitcoin. However, Coinroom Bitcoin is 1.23 times more volatile than Exmo Bitcoin USD. It trades about -0.06 of its potential returns per unit of risk. Exmo Bitcoin USD is currently generating about -0.09 per unit of risk. If you would invest 1,118,700 in Coinroom Bitcoin USD on March 20, 2018 and sell it today you would lose (289,599) from holding Coinroom Bitcoin USD or give up 25.89% of portfolio value over 30 days.
Pair Corralation between Coinroom Bitcoin and Exmo Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Coinroom Bitcoin USD and Exmo Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Exmo 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 Exmo Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Exmo Bitcoin USD has no effect on the direction of Coinroom Bitcoin i.e. Coinroom Bitcoin and Exmo Bitcoin go up and down completely randomly.
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