This module allows you to analyze existing cross correlation between Liqnet Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on Liqnet Bitcoin and Bitfinex 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 Liqnet Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Liqnet Bitcoin and Bitfinex Bitcoin.
|Horizon||30 Days Login to change|
|Liqnet Bitcoin USD|
Over the last 30 days Liqnet Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in October 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
|Bitfinex Bitcoin USD|
Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound fundamental drivers, Bitfinex Bitcoin is not utilizing all of its potentials. The prevalent stock price tumult, may contribute to shorter-term losses for the shareholders.
Liqnet Bitcoin and Bitfinex Bitcoin Volatility Contrast
Liqnet Bitcoin USD vs. Bitfinex Bitcoin USD
Assuming 30 trading days horizon, Liqnet Bitcoin USD is expected to under-perform the Bitfinex Bitcoin. In addition to that, Liqnet Bitcoin is 3.58 times more volatile than Bitfinex Bitcoin USD. It trades about -0.71 of its total potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about -0.71 per unit of volatility. If you would invest 1,006,700 in Bitfinex Bitcoin USD on August 22, 2019 and sell it today you would lose (1,600) from holding Bitfinex Bitcoin USD or give up 0.16% of portfolio value over 30 days.
Pair Corralation between Liqnet Bitcoin and Bitfinex Bitcoin
|Time Period||3 Months [change]|
Diversification Opportunities for Liqnet Bitcoin and Bitfinex Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding Liqnet Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and Liqnet 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 Liqnet Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of Liqnet Bitcoin i.e. Liqnet Bitcoin and Bitfinex Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Commodity Channel Index module to use commodity channel index to analyze current equity momentum.