This module allows you to analyze existing cross correlation between Kraken Monero USD and HitBTC Verge USD. You can compare the effects of market volatilities on Kraken Monero and HitBTC Verge 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 Verge. See also your portfolio center
. Please also check ongoing floating volatility patterns of Kraken Monero
and HitBTC Verge
Kraken Monero USD vs HitBTC Verge USD
Assuming 30 trading days horizon, Kraken Monero is expected to generate 4.77 times less return on investment than HitBTC Verge. But when comparing it to its historical volatility, Kraken Monero USD is 2.65 times less risky than HitBTC Verge. It trades about 0.05 of its potential returns per unit of risk. HitBTC Verge USD is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 12 in HitBTC Verge USD on December 21, 2017 and sell it today you would lose (1.29) from holding HitBTC Verge USD or give up 10.75% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding Kraken Monero USD and HitBTC Verge USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC Verge 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 Verge. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC Verge USD has no effect on the direction of Kraken Monero i.e. Kraken Monero and HitBTC Verge go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Monero USD are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in HitBTC Verge USD are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.