This module allows you to analyze existing cross correlation between Kraken Ethereum USD and HitBTC Ethereum USD. You can compare the effects of market volatilities on Kraken Ethereum and HitBTC 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 HitBTC Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Ethereum and HitBTC Ethereum.
Assuming 30 trading days horizon, Kraken Ethereum USD is expected to generate 1.13 times more return on investment than HitBTC Ethereum. However, Kraken Ethereum is 1.13 times more volatile than HitBTC Ethereum USD. It trades about -0.07 of its potential returns per unit of risk. HitBTC Ethereum USD is currently generating about -0.08 per unit of risk. If you would invest 87,031 in Kraken Ethereum USD on March 27, 2018 and sell it today you would lose (23,682) from holding Kraken Ethereum USD or give up 27.21% of portfolio value over 30 days.
Pair Corralation between Kraken Ethereum and HitBTC Ethereum
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Ethereum USD and HitBTC Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC 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 HitBTC Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Ethereum USD has no effect on the direction of Kraken Ethereum i.e. Kraken Ethereum and HitBTC Ethereum go up and down completely randomly.
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