Correlation Analysis Between LakeBTC Bitcoin and Bitstamp Bitcoin

This module allows you to analyze existing cross correlation between LakeBTC Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on LakeBTC Bitcoin and Bitstamp 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 LakeBTC Bitcoin with a short position of Bitstamp Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of LakeBTC Bitcoin and Bitstamp Bitcoin.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

LakeBTC Bitcoin USD  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 9 (%) of all global equities and portfolios over the last 30 days.
Bitstamp Bitcoin USD  

Risk-Adjusted Performance

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

LakeBTC Bitcoin and Bitstamp Bitcoin Volatility Contrast

 Predicted Return Density 

LakeBTC Bitcoin USD  vs.  Bitstamp Bitcoin USD


Bitcoin on LakeBTC in USD

(148.76)  0.03%
Market Cap: 5.6 B


Bitcoin on Bitstamp in USD

(103.49)  0.03%
Market Cap: 17.4 B
16.06% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, LakeBTC Bitcoin USD is expected to generate 38.14 times more return on investment than Bitstamp Bitcoin. However, LakeBTC Bitcoin is 38.14 times more volatile than Bitstamp Bitcoin USD. It trades about 0.14 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about -0.08 per unit of risk. If you would invest  493,054  in LakeBTC Bitcoin USD on December 22, 2018 and sell it today you would lose (73,387)  from holding LakeBTC Bitcoin USD or give up 14.88% of portfolio value over 30 days.

Pair Corralation between LakeBTC Bitcoin and Bitstamp Bitcoin

Time Period2 Months [change]
StrengthVery Weak
ValuesDaily Returns

Diversification Opportunities for LakeBTC Bitcoin and Bitstamp Bitcoin

LakeBTC Bitcoin USD diversification synergy

Weak diversification

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

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See also your portfolio center. Please also try Transaction History module to view history of all your transactions and understand their impact on performance.