This module allows you to analyze existing cross correlation between itBit Bitcoin USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on itBit Bitcoin and LocalBitcoins 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 LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of itBit Bitcoin and LocalBitcoins Bitcoin.
Assuming 30 trading days horizon, itBit Bitcoin is expected to generate 25.52 times less return on investment than LocalBitcoins Bitcoin. But when comparing it to its historical volatility, itBit Bitcoin USD is 13.99 times less risky than LocalBitcoins Bitcoin. It trades about 0.07 of its potential returns per unit of risk. LocalBitcoins Bitcoin USD is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 848,600 in LocalBitcoins Bitcoin USD on September 17, 2018 and sell it today you would lose (30,739) from holding LocalBitcoins Bitcoin USD or give up 3.62% of portfolio value over 30 days.
Pair Corralation between itBit Bitcoin and LocalBitcoins Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding itBit Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins 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 LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of itBit Bitcoin i.e. itBit Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.