This module allows you to analyze existing cross correlation between Gemini Bitcoin USD and Quoine Bitcoin USD. You can compare the effects of market volatilities on Gemini Bitcoin and Quoine 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 Quoine Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Gemini Bitcoin
and Quoine Bitcoin
Gemini Bitcoin USD vs Quoine Bitcoin USD
Assuming 30 trading days horizon, Gemini Bitcoin USD is expected to under-perform the Quoine Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Gemini Bitcoin USD is 1.13 times less risky than Quoine Bitcoin. The crypto trades about -0.11 of its potential returns per unit of risk. The Quoine Bitcoin USD is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 1,729,257 in Quoine Bitcoin USD on December 20, 2017 and sell it today you would lose (519,109) from holding Quoine Bitcoin USD or give up 30.02% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Gemini Bitcoin USD and Quoine Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Quoine 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 Quoine Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoine Bitcoin USD has no effect on the direction of Gemini Bitcoin i.e. Gemini Bitcoin and Quoine 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.
Over the last 30 days Quoine Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.