This module allows you to analyze existing cross correlation between Gemini Bitcoin USD and Coinbase Ethereum USD. You can compare the effects of market volatilities on Gemini Bitcoin and Coinbase Ethereum 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 Gemini Bitcoin with a short position of Coinbase Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gemini Bitcoin
and Coinbase Ethereum
Over the last 30 days Gemini Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Gemini Bitcoin and Coinbase Ethereum Volatility Contrast
Gemini Bitcoin USD vs. Coinbase Ethereum USD
Assuming 30 trading days horizon, Gemini Bitcoin is expected to generate 10.36 times less return on investment than Coinbase Ethereum. But when comparing it to its historical volatility, Gemini Bitcoin USD is 2.35 times less risky than Coinbase Ethereum. It trades about 0.03 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 10,976 in Coinbase Ethereum USD on January 20, 2019 and sell it today you would earn a total of 3,767 from holding Coinbase Ethereum USD or generate 34.32% return on investment over 30 days.
Pair Corralation between Gemini Bitcoin and Coinbase Ethereum
|Time Period||2 Months [change]|
Diversification Opportunities for Gemini Bitcoin and Coinbase Ethereum
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Ethereum USD and Gemini 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 Gemini Bitcoin USD are associated (or correlated) with Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Coinbase Ethereum go up and down completely randomly.