This module allows you to analyze existing cross correlation between HitBTC Bancor Network Token USD and Lykke SolarCoin USD. You can compare the effects of market volatilities on HitBTC Bancor and Lykke SolarCoin 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 HitBTC Bancor with a short position of Lykke SolarCoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC Bancor
and Lykke SolarCoin
HitBTC Bancor Network Token US vs Lykke SolarCoin USD
Assuming 30 trading days horizon, HitBTC Bancor Network Token USD is expected to under-perform the Lykke SolarCoin. But the crypto apears to be less risky and, when comparing its historical volatility, HitBTC Bancor Network Token USD is 3.0 times less risky than Lykke SolarCoin. The crypto trades about -0.35 of its potential returns per unit of risk. The Lykke SolarCoin USD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 49.26 in Lykke SolarCoin USD on February 22, 2018 and sell it today you would lose (4.26) from holding Lykke SolarCoin USD or give up 8.65% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC Bancor Network Token US and Lykke SolarCoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Lykke SolarCoin USD and HitBTC Bancor 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 HitBTC Bancor Network Token USD are associated (or correlated) with Lykke SolarCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lykke SolarCoin USD has no effect on the direction of HitBTC Bancor i.e. HitBTC Bancor and Lykke SolarCoin go up and down completely randomly.
Over the last 30 days HitBTC Bancor Network Token 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 Lykke SolarCoin USD are ranked lower than 2 (%) of all global equities and portfolios over the last 30 days.