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This module allows you to analyze existing cross correlation between Kraken Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on Kraken Bitcoin and Bitstamp 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 Bitstamp Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Bitcoin and Bitstamp Bitcoin.
|Horizon||30 Days Login to change|
|Kraken Bitcoin USD|
Kraken Bitcoin and Bitstamp Bitcoin Volatility Contrast
Predicted Return Density
Kraken Bitcoin USD vs. Bitstamp Bitcoin USD
Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to generate 1.28 times more return on investment than Bitstamp Bitcoin. However, Kraken Bitcoin is 1.28 times more volatile than Bitstamp Bitcoin USD. It trades about -0.31 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about -0.41 per unit of risk. If you would invest 638,880 in Kraken Bitcoin USD on November 17, 2018 and sell it today you would lose (316,490) from holding Kraken Bitcoin USD or give up 49.54% of portfolio value over 30 days.
Pair Corralation between Kraken Bitcoin and Bitstamp Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Kraken Bitcoin and Bitstamp Bitcoin
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp 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 Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of Kraken Bitcoin i.e. Kraken Bitcoin and Bitstamp Bitcoin go up and down completely randomly.