Pair Correlation Between Kraken Bitcoin and Bitfinex Bitcoin

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

Kraken

Bitcoin on Kraken in USD
 13,893 
2,733  24.49%
Market Cap: 365.9 B
 38 

Bitfinex

Bitcoin on Bitfinex in USD
 13,855 
2,885  26.3%
Market Cap: 11350.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to under-perform the Bitfinex Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Kraken Bitcoin USD is 1.13 times less risky than Bitfinex Bitcoin. The crypto trades about -0.17 of its potential returns per unit of risk. The Bitfinex Bitcoin USD is currently generating about -0.12 of returns per unit of risk over similar time horizon. If you would invest  1,734,500  in Bitfinex Bitcoin USD on December 18, 2017 and sell it today you would lose (637,500)  from holding Bitfinex Bitcoin USD or give up 36.75% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Bitcoin and Bitfinex 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 Kraken Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Kraken 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 Kraken Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Kraken Bitcoin i.e. Kraken Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Kraken Bitcoin USD

Pair trading matchups for Kraken Bitcoin

Bitfinex Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Bitfinex Bitcoin USD

Pair trading matchups for Bitfinex Bitcoin