This module allows you to analyze existing cross correlation between HitBTC DigitalNote USD and Poloniex Stellar USD. You can compare the effects of market volatilities on HitBTC DigitalNote and Poloniex Stellar 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 Poloniex Stellar. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC DigitalNote
and Poloniex Stellar
HitBTC DigitalNote USD vs Poloniex Stellar USD
Assuming 30 trading days horizon, HitBTC DigitalNote USD is expected to under-perform the Poloniex Stellar. In addition to that, HitBTC DigitalNote is 1.1 times more volatile than Poloniex Stellar USD. It trades about -0.34 of its total potential returns per unit of risk. Poloniex Stellar USD is currently generating about -0.16 per unit of volatility. If you would invest 36.62 in Poloniex Stellar USD on February 22, 2018 and sell it today you would lose (12.67) from holding Poloniex Stellar USD or give up 34.6% 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 DigitalNote USD and Poloniex Stellar USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Stellar 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 Poloniex Stellar. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Stellar USD has no effect on the direction of HitBTC DigitalNote i.e. HitBTC DigitalNote and Poloniex Stellar 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 Poloniex Stellar USD has generated negative risk-adjusted returns adding no value to investors with long positions.