This module allows you to analyze existing cross correlation between HitBTC Bitcoin USD and Cexio Bitcoin USD. You can compare the effects of market volatilities on HitBTC Bitcoin and Cexio 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 HitBTC Bitcoin with a short position of Cexio Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC Bitcoin
and Cexio Bitcoin
HitBTC Bitcoin USD vs Cexio Bitcoin USD
Assuming 30 trading days horizon, HitBTC Bitcoin USD is expected to under-perform the Cexio Bitcoin. In addition to that, HitBTC Bitcoin is 1.17 times more volatile than Cexio Bitcoin USD. It trades about -0.13 of its total potential returns per unit of risk. Cexio Bitcoin USD is currently generating about -0.13 per unit of volatility. If you would invest 2,034,089 in Cexio Bitcoin USD on December 17, 2017 and sell it today you would lose (533,914) from holding Cexio Bitcoin USD or give up 26.25% 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 HitBTC Bitcoin USD and Cexio Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cexio Bitcoin USD and HitBTC 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 HitBTC Bitcoin USD are associated (or correlated) with Cexio Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cexio Bitcoin USD has no effect on the direction of HitBTC Bitcoin i.e. HitBTC Bitcoin and Cexio Bitcoin go up and down completely randomly.
Over the last 30 days HitBTC Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Cexio Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.