This module allows you to analyze existing cross correlation between HitBTC DigitalNote USD and HitBTC Komodo USD. You can compare the effects of market volatilities on HitBTC DigitalNote and HitBTC Komodo 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 HitBTC Komodo. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigitalNote
and HitBTC Komodo
HitBTC DigitalNote USD vs HitBTC Komodo USD
Assuming 30 trading days horizon, HitBTC DigitalNote USD is expected to under-perform the HitBTC Komodo. In addition to that, HitBTC DigitalNote is 1.08 times more volatile than HitBTC Komodo USD. It trades about -0.37 of its total potential returns per unit of risk. HitBTC Komodo USD is currently generating about -0.24 per unit of volatility. If you would invest 515.00 in HitBTC Komodo USD on February 15, 2018 and sell it today you would lose (221.00) from holding HitBTC Komodo USD or give up 42.91% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding HitBTC DigitalNote USD and HitBTC Komodo USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC Komodo 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 HitBTC Komodo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Komodo USD has no effect on the direction of HitBTC DigitalNote i.e. HitBTC DigitalNote and HitBTC Komodo go up and down completely randomly.
Over the last 30 days HitBTC DigitalNote USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC Komodo USD has generated negative risk-adjusted returns adding no value to investors with long positions.