Correlation Analysis Between Kraken Bitcoin and LocalBitcoins Bitcoin

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

Comparative Performance

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.
LocalBitcoins Bitcoin USD  
8

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.

Kraken Bitcoin and LocalBitcoins Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

Kraken Bitcoin USD  vs.  LocalBitcoins Bitcoin USD

Kraken

Bitcoin on Kraken in USD

 3,208 
(51.90)  1.59%
Market Cap: 6.2 B
  

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 5,752 
539.73  10.36%
Market Cap: 95.1 M
(2,543)
79.28% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, Kraken Bitcoin USD is 8.25 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.31 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest  967,907  in LocalBitcoins Bitcoin USD on November 14, 2018 and sell it today you would lose (528,548)  from holding LocalBitcoins Bitcoin USD or give up 54.61% of portfolio value over 30 days.

Pair Corralation between Kraken Bitcoin and LocalBitcoins Bitcoin

0.55
Time Period2 Months [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for Kraken Bitcoin and LocalBitcoins Bitcoin

Kraken Bitcoin USD diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken 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 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 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 Kraken Bitcoin i.e. Kraken Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.

Thematic Opportunities

Explore Investment Opportunities

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.
Explore Thematic Ideas
Explore Investing Ideas  
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.


 
Search macroaxis.com