Pair Correlation Between Kraken Monero and HitBTC DigitalNote

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

Kraken

Monero on Kraken in USD
 275.58 
2.09  0.75%
Market Cap: 614 M

HitBTC

DigitalNote on HitBTC in USD
 0.01982 
0.00001  0.0504%
Market Cap: 655.8 K
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, Kraken Monero USD is expected to generate 0.8 times more return on investment than HitBTC DigitalNote. However, Kraken Monero USD is 1.25 times less risky than HitBTC DigitalNote. It trades about -0.02 of its potential returns per unit of risk. HitBTC DigitalNote USD is currently generating about -0.07 per unit of risk. If you would invest  31,725  in Kraken Monero USD on January 24, 2018 and sell it today you would lose (3,958)  from holding Kraken Monero USD or give up 12.48% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between Kraken Monero and HitBTC DigitalNote
0.87

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Diversification

Very poor diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 

Kraken Monero USD

  
0 

Risk-Adjusted Performance

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

HitBTC DigitalNote USD

  
0 

Risk-Adjusted Performance

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