This module allows you to analyze existing cross correlation between Liquid Bitcoin USD and Bitfinex Recovery Right Tokens USD. You can compare the effects of market volatilities on Liquid Bitcoin and Bitfinex Recovery 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 Liquid Bitcoin with a short position of Bitfinex Recovery. See also your portfolio center
. Please also check ongoing floating volatility patterns of Liquid Bitcoin
and Bitfinex Recovery
Over the last 30 days Liquid Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitfinex Recovery Right Tokens USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Liquid Bitcoin and Bitfinex Recovery Volatility Contrast
Liquid Bitcoin USD vs. Bitfinex Recovery Right Tokens
Assuming 30 trading days horizon, Liquid Bitcoin USD is expected to generate 1.16 times more return on investment than Bitfinex Recovery. However, Liquid Bitcoin is 1.16 times more volatile than Bitfinex Recovery Right Tokens USD. It trades about -0.01 of its potential returns per unit of risk. Bitfinex Recovery Right Tokens USD is currently generating about -0.03 per unit of risk. If you would invest 369,707 in Liquid Bitcoin USD on January 18, 2019 and sell it today you would lose (11,667) from holding Liquid Bitcoin USD or give up 3.16% of portfolio value over 30 days.
Pair Corralation between Liquid Bitcoin and Bitfinex Recovery
|Time Period||2 Months [change]|
Diversification Opportunities for Liquid Bitcoin and Bitfinex Recovery
Overlapping area represents the amount of risk that can be diversified away by holding Liquid Bitcoin USD and Bitfinex Recovery Right Tokens in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Recovery Right and Liquid 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 Liquid Bitcoin USD are associated (or correlated) with Bitfinex Recovery. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Recovery Right has no effect on the direction of Liquid Bitcoin i.e. Liquid Bitcoin and Bitfinex Recovery go up and down completely randomly.