Pair Correlation Between Gatecoin Bitcoin and Kraken Bitcoin

This module allows you to analyze existing cross correlation between Gatecoin Bitcoin USD and Kraken Bitcoin USD. You can compare the effects of market volatilities on Gatecoin Bitcoin and Kraken 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 Gatecoin Bitcoin with a short position of Kraken Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Gatecoin Bitcoin and Kraken Bitcoin.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Gatecoin Bitcoin USD  vs   Kraken Bitcoin USD

Gatecoin

Bitcoin on Gatecoin in USD
 12,500 
(100.2)  0.8%
Market Cap: 2.8 B
 924.7 

Kraken

Bitcoin on Kraken in USD
 11,575 
315.1  2.8%
Market Cap: 1160.2 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Gatecoin Bitcoin USD is expected to generate 0.78 times more return on investment than Kraken Bitcoin. However, Gatecoin Bitcoin USD is 1.27 times less risky than Kraken Bitcoin. It trades about -0.18 of its potential returns per unit of risk. Kraken Bitcoin USD is currently generating about -0.2 per unit of risk. If you would invest  1,908,000  in Gatecoin Bitcoin USD on December 18, 2017 and sell it today you would lose (658,020)  from holding Gatecoin Bitcoin USD or give up 34.49% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Gatecoin Bitcoin and Kraken Bitcoin
0.91

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthVery Strong
Accuracy96.77%
ValuesDaily Returns

Diversification

Almost no diversification

Overlapping area represents the amount of risk that can be diversified away by holding Gatecoin Bitcoin USD and Kraken Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Kraken Bitcoin USD and Gatecoin 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 Gatecoin Bitcoin USD are associated (or correlated) with Kraken Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kraken Bitcoin USD has no effect on the direction of Gatecoin Bitcoin i.e. Gatecoin Bitcoin and Kraken Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Gatecoin Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Gatecoin Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Gatecoin Bitcoin USD

Pair trading matchups for Gatecoin Bitcoin

Kraken Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Kraken Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Kraken Bitcoin USD

Pair trading matchups for Kraken Bitcoin