This module allows you to analyze existing cross correlation between HitBTC DigiByte USD and LiveCoin Litecoin USD. You can compare the effects of market volatilities on HitBTC DigiByte and LiveCoin Litecoin 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 Litecoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigiByte
and LiveCoin Litecoin
HitBTC DigiByte USD vs LiveCoin Litecoin USD
Assuming 30 trading days horizon, HitBTC DigiByte USD is expected to under-perform the LiveCoin Litecoin. In addition to that, HitBTC DigiByte is 1.15 times more volatile than LiveCoin Litecoin USD. It trades about -0.36 of its total potential returns per unit of risk. LiveCoin Litecoin USD is currently generating about -0.19 per unit of volatility. If you would invest 22,100 in LiveCoin Litecoin USD on February 17, 2018 and sell it today you would lose (6,426) from holding LiveCoin Litecoin USD or give up 29.08% 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 Litecoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LiveCoin Litecoin 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 Litecoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LiveCoin Litecoin USD has no effect on the direction of HitBTC DigiByte i.e. HitBTC DigiByte and LiveCoin Litecoin 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 Litecoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.