Correlation Analysis Between itBit Bitcoin and LocalBitcoins Bitcoin

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.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

itBit Bitcoin USD  
00

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 latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the entity investors.
LocalBitcoins Bitcoin USD  
77

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.

itBit Bitcoin and LocalBitcoins Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

itBit Bitcoin USD  vs.  LocalBitcoins Bitcoin USD

itBit

Bitcoin on itBit in USD

 10,100 
(680.50)  6.31%
Market Cap: 80.1 B
  

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 10,784 
(2,967)  21.57%
Market Cap: 876.2 M
(683.58)
6.77% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, itBit Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, itBit Bitcoin USD is 2.72 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.02 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest  1,277,988  in LocalBitcoins Bitcoin USD on July 22, 2019 and sell it today you would earn a total of  262,787  from holding LocalBitcoins Bitcoin USD or generate 20.56% return on investment over 30 days.

Pair Corralation between itBit Bitcoin and LocalBitcoins Bitcoin

0.56
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for itBit Bitcoin and LocalBitcoins Bitcoin

itBit Bitcoin USD diversification synergy

Very weak diversification

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.
See also your portfolio center. Please also try Price Ceiling Movement module to calculate and plot price ceiling movement for different equity instruments.


 
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