This module allows you to analyze existing cross correlation between itBit Bitcoin USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and Coinbase 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 Coinbase Bitcoin. See also
your portfolio center. Please also check ongoing floating volatility patterns of
itBit Bitcoin and
Coinbase Bitcoin.
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Horizon
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30 Days
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to change
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Comparative Performance
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. Despite somewhat fragile basic indicators, itBit Bitcoin sustained solid returns over the last few months and may actually be approaching a breakup point.
Risk-Adjusted Performance
Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. In defiance of relatively invariable forward-looking signals, Coinbase Bitcoin is not utilizing all of its potentials. The current stock price agitation, may contribute to short term losses for the management.
itBit Bitcoin and Coinbase Bitcoin Volatility Contrast
itBit Bitcoin USD vs. Coinbase Bitcoin USD
Pair Volatility
Assuming 30 trading days horizon, itBit Bitcoin USD is expected to generate 16.69 times more return on investment than Coinbase Bitcoin. However, itBit Bitcoin is 16.69 times more volatile than Coinbase Bitcoin USD. It trades about 0.71 of its potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about 0.71 per unit of risk. If you would invest 986,750 in itBit Bitcoin USD on August 20, 2019 and sell it today you would earn a total of 19,375 from holding itBit Bitcoin USD or generate 1.96% return on investment over 30 days.
Pair Corralation between itBit Bitcoin and Coinbase Bitcoin
0.0
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification Opportunities for itBit Bitcoin and Coinbase Bitcoin
Pay attention
Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase 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 Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and Coinbase Bitcoin go up and down completely randomly.