This module allows you to analyze existing cross correlation between HitBTC NEM USD and HitBTC Verge USD. You can compare the effects of market volatilities on HitBTC NEM and HitBTC Verge 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 NEM with a short position of HitBTC Verge. See also your portfolio center
. Please also check ongoing floating volatility patterns of HitBTC NEM
and HitBTC Verge
HitBTC NEM USD vs HitBTC Verge USD
Assuming 30 trading days horizon, HitBTC NEM USD is expected to generate 0.81 times more return on investment than HitBTC Verge. However, HitBTC NEM USD is 1.24 times less risky than HitBTC Verge. It trades about 0.07 of its potential returns per unit of risk. HitBTC Verge USD is currently generating about 0.01 per unit of risk. If you would invest 98.6 in HitBTC NEM USD on December 24, 2017 and sell it today you would lose (5) from holding HitBTC NEM USD or give up 5.07% 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 NEM USD and HitBTC Verge USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC Verge USD and HitBTC NEM 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 NEM USD are associated (or correlated) with HitBTC Verge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Verge USD has no effect on the direction of HitBTC NEM i.e. HitBTC NEM and HitBTC Verge go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in HitBTC NEM USD are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days HitBTC Verge USD has generated negative risk-adjusted returns adding no value to investors with long positions.