This module allows you to analyze existing cross correlation between Exmo Bitcoin USD and Gemini Bitcoin USD. You can compare the effects of market volatilities on Exmo Bitcoin and Gemini 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 Gemini Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Exmo Bitcoin and Gemini Bitcoin.
Assuming 30 trading days horizon, Exmo Bitcoin USD is expected to generate 0.89 times more return on investment than Gemini Bitcoin. However, Exmo Bitcoin USD is 1.12 times less risky than Gemini Bitcoin. It trades about -0.22 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about -0.22 per unit of risk. If you would invest 938,000 in Exmo Bitcoin USD on April 23, 2018 and sell it today you would lose (141,171) from holding Exmo Bitcoin USD or give up 15.05% of portfolio value over 30 days.
Pair Corralation between Exmo Bitcoin and Gemini Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Exmo Bitcoin USD and Gemini Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gemini 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 Gemini Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Bitcoin USD has no effect on the direction of Exmo Bitcoin i.e. Exmo Bitcoin and Gemini Bitcoin go up and down completely randomly.
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