This module allows you to analyze existing cross correlation between itBit Bitcoin USD and BitBay Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and BitBay 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 itBit Bitcoin with a short position of BitBay Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of itBit Bitcoin
and BitBay Bitcoin
itBit Bitcoin USD vs BitBay Bitcoin USD
Assuming 30 trading days horizon, itBit Bitcoin USD is expected to under-perform the BitBay Bitcoin. In addition to that, itBit Bitcoin is 1.35 times more volatile than BitBay Bitcoin USD. It trades about -0.19 of its total potential returns per unit of risk. BitBay Bitcoin USD is currently generating about -0.22 per unit of volatility. If you would invest 1,888,400 in BitBay Bitcoin USD on December 17, 2017 and sell it today you would lose (588,400) from holding BitBay Bitcoin USD or give up 31.16% 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 itBit Bitcoin USD and BitBay Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitBay Bitcoin USD and itBit Bitcoin 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 itBit Bitcoin USD are associated (or correlated) with BitBay Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitBay Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and BitBay Bitcoin go up and down completely randomly.
Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days BitBay Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.