This module allows you to analyze existing cross correlation between Gemini Bitcoin USD and Lykke Bitcoin USD. You can compare the effects of market volatilities on Gemini Bitcoin and Lykke 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 Gemini Bitcoin with a short position of Lykke Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gemini Bitcoin
and Lykke Bitcoin
Gemini Bitcoin USD vs Lykke Bitcoin USD
Assuming 30 trading days horizon, Gemini Bitcoin USD is expected to under-perform the Lykke Bitcoin. In addition to that, Gemini Bitcoin is 1.28 times more volatile than Lykke Bitcoin USD. It trades about -0.14 of its total potential returns per unit of risk. Lykke Bitcoin USD is currently generating about -0.11 per unit of volatility. If you would invest 1,780,000 in Lykke Bitcoin USD on December 19, 2017 and sell it today you would lose (233,000) from holding Lykke Bitcoin USD or give up 13.09% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Lykke Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lykke Bitcoin 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 Lykke Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykke Bitcoin USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Lykke Bitcoin go up and down completely randomly.
Over the last 30 days Gemini Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.