Pair Correlation Between itBit Bitcoin and Cexio Bitcoin

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

itBit

Bitcoin on itBit in USD
 11,708 
365.66  3.22%
Market Cap: 472.6 B
(869.09)

Cexio

Bitcoin on Cexio in USD
 12,577 
408.5  3.36%
Market Cap: 217.5 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to generate 1.01 times more return on investment than Cexio Bitcoin. However, itBit Bitcoin is 1.01 times more volatile than Cexio Bitcoin USD. It trades about -0.03 of its potential returns per unit of risk. Cexio Bitcoin USD is currently generating about -0.07 per unit of risk. If you would invest  1,405,338  in itBit Bitcoin USD on December 23, 2017 and sell it today you would lose (234,547)  from holding itBit Bitcoin USD or give up 16.69% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between itBit Bitcoin and Cexio Bitcoin
0.99

Parameters

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

Diversification

No risk reduction

Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and Cexio Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cexio 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 Cexio Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cexio Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and Cexio Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

itBit Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Cexio Bitcoin USD

  
0 

Risk-Adjusted Performance

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