This module allows you to analyze existing cross correlation between Kraken Monero USD and BitTrex Ethereum Classic USD. You can compare the effects of market volatilities on Kraken Monero and BitTrex 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 Monero with a short position of BitTrex Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Monero
and BitTrex Ethereum
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 BitTrex Ethereum Classic USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Kraken Monero and BitTrex Ethereum Volatility Contrast
Kraken Monero USD vs. BitTrex Ethereum Classic USD
Assuming 30 trading days horizon, Kraken Monero USD is expected to under-perform the BitTrex Ethereum. In addition to that, Kraken Monero is 1.4 times more volatile than BitTrex Ethereum Classic USD. It trades about -0.1 of its total potential returns per unit of risk. BitTrex Ethereum Classic USD is currently generating about -0.05 per unit of volatility. If you would invest 539.00 in BitTrex Ethereum Classic USD on December 18, 2018 and sell it today you would lose (101.00) from holding BitTrex Ethereum Classic USD or give up 18.74% of portfolio value over 30 days.
Pair Corralation between Kraken Monero and BitTrex Ethereum
|Time Period||2 Months [change]|
Diversification Opportunities for Kraken Monero and BitTrex Ethereum
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and BitTrex Ethereum Classic USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on BitTrex Ethereum Cla 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 BitTrex Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitTrex Ethereum Cla has no effect on the direction of Kraken Monero i.e. Kraken Monero and BitTrex Ethereum go up and down completely randomly.