Correlation Analysis Between Gemini Bitcoin and Coinbase Ethereum

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.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

Gemini Bitcoin USD  

Risk-Adjusted Performance

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

Risk-Adjusted Performance

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

 Predicted Return Density 

Gemini Bitcoin USD  vs.  Coinbase Ethereum USD


Bitcoin on Gemini in USD

(296.46)  7.62%
Market Cap: 17.8 B


Ethereum on Coinbase in USD

(25.53)  17.32%
Market Cap: 2.4 B
 Performance (%) 

Pair Volatility

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 Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Gemini Bitcoin and Coinbase Ethereum

Gemini Bitcoin USD diversification synergy

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.

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Coinbase Ethereum USD

Pair trading matchups for Coinbase Ethereum

See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.