This module allows you to analyze existing cross correlation between Exmo Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on Exmo Bitcoin and Bitfinex 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 Exmo Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Exmo Bitcoin
and Bitfinex Bitcoin
Exmo Bitcoin USD vs Bitfinex Bitcoin USD
Assuming 30 trading days horizon, Exmo Bitcoin USD is expected to generate 0.8 times more return on investment than Bitfinex Bitcoin. However, Exmo Bitcoin USD is 1.25 times less risky than Bitfinex Bitcoin. It trades about -0.04 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about -0.05 per unit of risk. If you would invest 1,548,210 in Exmo Bitcoin USD on December 22, 2017 and sell it today you would lose (258,210) from holding Exmo Bitcoin USD or give up 16.68% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Exmo Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Exmo 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 Exmo Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Exmo Bitcoin i.e. Exmo Bitcoin and Bitfinex Bitcoin go up and down completely randomly.
Over the last 30 days Exmo Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.