Correlation Analysis Between LakeBTC Bitcoin and itBit Bitcoin

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

Comparative Performance

LakeBTC Bitcoin USD  
8

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LakeBTC Bitcoin USD are ranked lower than 8 (%) of all global equities and portfolios over the last 30 days.
itBit Bitcoin USD  
0

Risk-Adjusted Performance

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

LakeBTC Bitcoin and itBit Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

LakeBTC Bitcoin USD  vs.  itBit Bitcoin USD

LakeBTC

Bitcoin on LakeBTC in USD

 3,914 
(127.77)  3.16%
Market Cap: 5.9 B
  

itBit

Bitcoin on itBit in USD

 3,267 
0.39  0.0119%
Market Cap: 23.6 B
 647.55 
16.54% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LakeBTC Bitcoin USD is expected to generate 29.47 times more return on investment than itBit Bitcoin. However, LakeBTC Bitcoin is 29.47 times more volatile than itBit Bitcoin USD. It trades about 0.13 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about -0.28 per unit of risk. If you would invest  705,461  in LakeBTC Bitcoin USD on November 14, 2018 and sell it today you would lose (313,417)  from holding LakeBTC Bitcoin USD or give up 44.43% of portfolio value over 30 days.

Pair Corralation between LakeBTC Bitcoin and itBit Bitcoin

0.87
Time Period2 Months [change]
DirectionPositive 
StrengthStrong
Accuracy97.78%
ValuesDaily Returns

Diversification Opportunities for LakeBTC Bitcoin and itBit Bitcoin

LakeBTC Bitcoin USD diversification synergy

Very poor diversification

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

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