Pair Correlation Between HitBTC DigitalNote and Coinbase Bitcoin

This module allows you to analyze existing cross correlation between HitBTC DigitalNote USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on HitBTC DigitalNote 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 DigitalNote with a short position of Coinbase Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of HitBTC DigitalNote and Coinbase Bitcoin.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 HitBTC DigitalNote USD  vs   Coinbase Bitcoin USD

HitBTC

DigitalNote on HitBTC in USD
 0.02936 
(0.00269)  8.39%
Market Cap: 680.1 K

Coinbase

Bitcoin on Coinbase in USD
 11,743 
(855.93)  6.79%
Market Cap: 1659.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, HitBTC DigitalNote USD is expected to generate 2.61 times more return on investment than Coinbase Bitcoin. However, HitBTC DigitalNote is 2.61 times more volatile than Coinbase Bitcoin USD. It trades about 0.18 of its potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.06 per unit of risk. If you would invest  1.7  in HitBTC DigitalNote USD on December 22, 2017 and sell it today you would earn a total of  1.24  from holding HitBTC DigitalNote USD or generate 72.89% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between HitBTC DigitalNote and Coinbase Bitcoin
0.54

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigitalNote 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 DigitalNote 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 DigitalNote 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 DigitalNote i.e. HitBTC DigitalNote and Coinbase Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

HitBTC DigitalNote USD

  
11 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in HitBTC DigitalNote USD are ranked lower than 11 (%) of all global equities and portfolios over the last 30 days.

HitBTC DigitalNote USD

Pair trading matchups for HitBTC DigitalNote

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Coinbase Bitcoin USD

Pair trading matchups for Coinbase Bitcoin