This module allows you to analyze existing cross correlation between HitBTC Stratis USD and HitBTC NEM USD. You can compare the effects of market volatilities on HitBTC Stratis and HitBTC NEM 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 Stratis with a short position of HitBTC NEM. See also your portfolio center. Please also check ongoing floating volatility patterns of HitBTC Stratis and HitBTC NEM.
Assuming 30 trading days horizon, HitBTC Stratis is expected to generate 5.75 times less return on investment than HitBTC NEM. But when comparing it to its historical volatility, HitBTC Stratis USD is 1.07 times less risky than HitBTC NEM. It trades about 0.01 of its potential returns per unit of risk. HitBTC NEM USD is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 40.93 in HitBTC NEM USD on March 25, 2018 and sell it today you would earn a total of 1.50 from holding HitBTC NEM USD or generate 3.66% return on investment over 30 days.
Pair Corralation between HitBTC Stratis and HitBTC NEM
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC Stratis USD and HitBTC NEM USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC NEM USD and HitBTC Stratis 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 Stratis USD are associated (or correlated) with HitBTC NEM. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC NEM USD has no effect on the direction of HitBTC Stratis i.e. HitBTC Stratis and HitBTC NEM go up and down completely randomly.
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