This module allows you to analyze existing cross correlation between HitBTC DigiByte USD and LiveCoin Adzcoin USD. You can compare the effects of market volatilities on HitBTC DigiByte and LiveCoin Adzcoin 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 DigiByte with a short position of LiveCoin Adzcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigiByte
and LiveCoin Adzcoin
HitBTC DigiByte USD vs LiveCoin Adzcoin USD
Assuming 30 trading days horizon, HitBTC DigiByte USD is expected to under-perform the LiveCoin Adzcoin. But the crypto apears to be less risky and, when comparing its historical volatility, HitBTC DigiByte USD is 1.82 times less risky than LiveCoin Adzcoin. The crypto trades about -0.37 of its potential returns per unit of risk. The LiveCoin Adzcoin USD is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest 6.33 in LiveCoin Adzcoin USD on February 15, 2018 and sell it today you would lose (2.79) from holding LiveCoin Adzcoin USD or give up 44.01% 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 DigiByte USD and LiveCoin Adzcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LiveCoin Adzcoin USD and HitBTC DigiByte 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 DigiByte USD are associated (or correlated) with LiveCoin Adzcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveCoin Adzcoin USD has no effect on the direction of HitBTC DigiByte i.e. HitBTC DigiByte and LiveCoin Adzcoin go up and down completely randomly.
Over the last 30 days HitBTC DigiByte USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days LiveCoin Adzcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.