This module allows you to analyze existing cross correlation between Kraken Monero USD and Bitfinex Recovery Right Tokens USD. You can compare the effects of market volatilities on Kraken Monero and Bitfinex Recovery 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 Monero with a short position of Bitfinex Recovery. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Monero
and Bitfinex Recovery
Kraken Monero USD vs Bitfinex Recovery Right Tokens
Assuming 30 trading days horizon, Kraken Monero USD is expected to under-perform the Bitfinex Recovery. But the crypto apears to be less risky and, when comparing its historical volatility, Kraken Monero USD is 1.4 times less risky than Bitfinex Recovery. The crypto trades about -0.17 of its potential returns per unit of risk. The Bitfinex Recovery Right Tokens USD is currently generating about -0.09 of returns per unit of risk over similar time horizon. If you would invest 7.63 in Bitfinex Recovery Right Tokens USD on February 17, 2018 and sell it today you would lose (2.53) from holding Bitfinex Recovery Right Tokens USD or give up 33.18% 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 Monero USD and Bitfinex Recovery Right Tokens in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Recovery Right and Kraken Monero 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 Monero USD are associated (or correlated) with Bitfinex Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Recovery Right has no effect on the direction of Kraken Monero i.e. Kraken Monero and Bitfinex Recovery go up and down completely randomly.
Over the last 30 days Kraken Monero USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex Recovery Right Tokens USD has generated negative risk-adjusted returns adding no value to investors with long positions.