Pair Correlation Between Kraken Monero and Coinbase Bitcoin

This module allows you to analyze existing cross correlation between Kraken Monero USD and Coinbase Bitcoin USD. You can compare the effects of market volatilities on Kraken Monero and Coinbase Bitcoin 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 Coinbase Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Kraken Monero and Coinbase Bitcoin.
 Time Horizon     30 Days    Login   to change
Symbolsvs
 Kraken Monero USD  vs   Coinbase Bitcoin USD

Kraken

Monero on Kraken in USD
 318.03 
14.15  4.66%
Market Cap: 1.1 B

Coinbase

Bitcoin on Coinbase in USD
 10,670 
325.18  3.14%
Market Cap: 1973.9 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Monero USD is expected to generate 1.06 times more return on investment than Coinbase Bitcoin. However, Kraken Monero is 1.06 times more volatile than Coinbase Bitcoin USD. It trades about 0.03 of its potential returns per unit of risk. Coinbase Bitcoin USD is currently generating about -0.06 per unit of risk. If you would invest  32,199  in Kraken Monero USD on December 23, 2017 and sell it today you would lose (1,421)  from holding Kraken Monero USD or give up 4.41% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Monero and Coinbase Bitcoin
0.66

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthSignificant
Accuracy96.77%
ValuesDaily Returns

Diversification

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and Coinbase Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Bitcoin USD 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 Coinbase Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Bitcoin USD has no effect on the direction of Kraken Monero i.e. Kraken Monero and Coinbase Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Monero USD

  
1 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Monero USD are ranked lower than 1 (%) of all global equities and portfolios over the last 30 days.

Coinbase Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Coinbase Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.