This module allows you to analyze existing cross correlation between Kraken Ethereum USD and Bitfinex Ethereum USD. You can compare the effects of market volatilities on Kraken Ethereum and Bitfinex Ethereum 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 Ethereum with a short position of Bitfinex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Ethereum
and Bitfinex Ethereum
Kraken Ethereum USD vs Bitfinex Ethereum USD
Assuming 30 trading days horizon, Kraken Ethereum USD is expected to generate 1.0 times more return on investment than Bitfinex Ethereum. However, Kraken Ethereum USD is 1.0 times less risky than Bitfinex Ethereum. It trades about -0.4 of its potential returns per unit of risk. Bitfinex Ethereum USD is currently generating about -0.47 per unit of risk. If you would invest 97,470 in Kraken Ethereum USD on February 16, 2018 and sell it today you would lose (42,823) from holding Kraken Ethereum USD or give up 43.93% of portfolio value over 30 days.
|Time Period||1 Month [change]|
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Ethereum USD and Bitfinex Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Ethereum USD and Kraken Ethereum 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 Ethereum USD are associated (or correlated) with Bitfinex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Ethereum USD has no effect on the direction of Kraken Ethereum i.e. Kraken Ethereum and Bitfinex Ethereum go up and down completely randomly.
Over the last 30 days Kraken Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.