This module allows you to analyze existing cross correlation between itBit Bitcoin USD and Coinsbit Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and Coinsbit 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 Coinsbit Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of itBit Bitcoin and Coinsbit Bitcoin.
|Horizon||30 Days Login to change|
|itBit Bitcoin USD|
Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
|Coinsbit Bitcoin USD|
Over the last 30 days Coinsbit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable fundamental indicators, Coinsbit Bitcoin is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholder.
itBit Bitcoin and Coinsbit Bitcoin Volatility Contrast
Predicted Return Density
itBit Bitcoin USD vs. Coinsbit Bitcoin USD
Assuming 30 trading days horizon, itBit Bitcoin USD is expected to under-perform the Coinsbit Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, itBit Bitcoin USD is 1.06 times less risky than Coinsbit Bitcoin. The crypto trades about -0.07 of its potential returns per unit of risk. The Coinsbit Bitcoin USD is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,096,200 in Coinsbit Bitcoin USD on July 26, 2019 and sell it today you would lose (88,600) from holding Coinsbit Bitcoin USD or give up 8.08% of portfolio value over 30 days.
Pair Corralation between itBit Bitcoin and Coinsbit Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for itBit Bitcoin and Coinsbit Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and Coinsbit Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinsbit 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 Coinsbit Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinsbit Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and Coinsbit Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.