This module allows you to analyze existing cross correlation between HitBTC PeerCoin USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on HitBTC PeerCoin and Coinbase 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 PeerCoin with a short position of Coinbase Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of HitBTC PeerCoin and Coinbase Bitcoin.
Assuming 30 trading days horizon, HitBTC PeerCoin USD is expected to under-perform the Coinbase Bitcoin. In addition to that, HitBTC PeerCoin is 1.05 times more volatile than Coinbase Bitcoin USD. It trades about -0.18 of its total potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.08 per unit of volatility. If you would invest 1,109,572 in Coinbase Bitcoin USD on March 20, 2018 and sell it today you would lose (287,266) from holding Coinbase Bitcoin USD or give up 25.89% of portfolio value over 30 days.
Pair Corralation between HitBTC PeerCoin and Coinbase Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC PeerCoin USD and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Bitcoin USD and HitBTC PeerCoin 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 PeerCoin USD are associated (or correlated) with Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of HitBTC PeerCoin i.e. HitBTC PeerCoin and Coinbase Bitcoin go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.