This module allows you to analyze existing cross correlation between Kraken Augur USD and Poloniex Monero USD. You can compare the effects of market volatilities on Kraken Augur and Poloniex Monero 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 Poloniex Monero. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Augur
and Poloniex Monero
Kraken Augur USD vs Poloniex Monero USD
Assuming 30 trading days horizon, Kraken Augur USD is expected to generate 4.83 times more return on investment than Poloniex Monero. However, Kraken Augur is 4.83 times more volatile than Poloniex Monero USD. It trades about 0.13 of its potential returns per unit of risk. Poloniex Monero USD is currently generating about -0.12 per unit of risk. If you would invest 2,052 in Kraken Augur USD on February 15, 2018 and sell it today you would earn a total of 1,011 from holding Kraken Augur USD or generate 49.27% return on investment 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 Poloniex Monero USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Poloniex Monero 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 Poloniex Monero. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poloniex Monero USD has no effect on the direction of Kraken Augur i.e. Kraken Augur and Poloniex Monero go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Augur USD are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Poloniex Monero USD has generated negative risk-adjusted returns adding no value to investors with long positions.