This module allows you to analyze existing cross correlation between Kraken Ethereum USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on Kraken Ethereum and Bitstamp 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 Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Ethereum
and Bitstamp Ethereum
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 Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Kraken Ethereum and Bitstamp Ethereum Volatility Contrast
Kraken Ethereum USD vs. Bitstamp Ethereum USD
Assuming 30 trading days horizon, Kraken Ethereum USD is expected to generate 1.04 times more return on investment than Bitstamp Ethereum. However, Kraken Ethereum is 1.04 times more volatile than Bitstamp Ethereum USD. It trades about -0.29 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.31 per unit of risk. If you would invest 20,463 in Kraken Ethereum USD on November 16, 2018 and sell it today you would lose (11,961) from holding Kraken Ethereum USD or give up 58.45% of portfolio value over 30 days.
Pair Corralation between Kraken Ethereum and Bitstamp Ethereum
|Time Period||2 Months [change]|
Diversification Opportunities for Kraken Ethereum and Bitstamp Ethereum
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Ethereum USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp 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 Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of Kraken Ethereum i.e. Kraken Ethereum and Bitstamp Ethereum go up and down completely randomly.