This module allows you to analyze existing cross correlation between Kraken Augur USD and HitBTC Komodo USD. You can compare the effects of market volatilities on Kraken Augur and HitBTC Komodo 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 Augur with a short position of HitBTC Komodo. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Augur
and HitBTC Komodo
Kraken Augur USD vs HitBTC Komodo USD
Assuming 30 trading days horizon, Kraken Augur USD is expected to generate 1.65 times more return on investment than HitBTC Komodo. However, Kraken Augur is 1.65 times more volatile than HitBTC Komodo USD. It trades about -0.13 of its potential returns per unit of risk. HitBTC Komodo USD is currently generating about -0.24 per unit of risk. If you would invest 6,600 in Kraken Augur USD on February 18, 2018 and sell it today you would lose (3,228) from holding Kraken Augur USD or give up 48.91% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Augur USD and HitBTC Komodo USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC Komodo USD and Kraken Augur 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 Augur USD are associated (or correlated) with HitBTC Komodo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Komodo USD has no effect on the direction of Kraken Augur i.e. Kraken Augur and HitBTC Komodo go up and down completely randomly.
Over the last 30 days Kraken Augur USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC Komodo USD has generated negative risk-adjusted returns adding no value to investors with long positions.