This module allows you to analyze existing cross correlation between Exmo Bitcoin USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on Exmo Bitcoin and LocalBitcoins 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 LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Exmo Bitcoin and LocalBitcoins Bitcoin.
Assuming 30 trading days horizon, Exmo Bitcoin is expected to generate 4.49 times less return on investment than LocalBitcoins Bitcoin. But when comparing it to its historical volatility, Exmo Bitcoin USD is 5.27 times less risky than LocalBitcoins Bitcoin. It trades about 0.11 of its potential returns per unit of risk. LocalBitcoins Bitcoin USD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 930,754 in LocalBitcoins Bitcoin USD on June 19, 2018 and sell it today you would lose (16,854) from holding LocalBitcoins Bitcoin USD or give up 1.81% of portfolio value over 30 days.
Pair Corralation between Exmo Bitcoin and LocalBitcoins Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Exmo Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins 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 LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of Exmo Bitcoin i.e. Exmo Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.
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