This module allows you to analyze existing cross correlation between Liquid Bitcoin USD and Coinbase Ethereum USD. You can compare the effects of market volatilities on Liquid Bitcoin and Coinbase Ethereum 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 Coinbase Ethereum. See also
your portfolio center. Please also check ongoing floating volatility patterns of
Liquid Bitcoin and
Coinbase Ethereum.
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Horizon
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30 Days
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to change
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Comparative Performance
Risk-Adjusted Performance
Compared to the overall equity markets, risk-adjusted returns on investments in Liquid Bitcoin USD are ranked lower than 18 (%) of all global equities and portfolios over the last 30 days. Despite somewhat fragile basic indicators, Liquid Bitcoin sustained solid returns over the last few months and may actually be approaching a breakup point.
Risk-Adjusted Performance
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 15 (%) of all global equities and portfolios over the last 30 days. In defiance of relatively weak forward-looking signals, Coinbase Ethereum reported solid returns over the last few months and may actually be approaching a breakup point.
Liquid Bitcoin and Coinbase Ethereum Volatility Contrast
Liquid Bitcoin USD vs. Coinbase Ethereum USD
Pair Volatility
Assuming 30 trading days horizon, Liquid Bitcoin USD is expected to generate 0.94 times more return on investment than Coinbase Ethereum. However, Liquid Bitcoin USD is 1.06 times less risky than Coinbase Ethereum. It trades about 0.27 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about 0.22 per unit of risk. If you would invest 527,834 in Liquid Bitcoin USD on May 18, 2019 and sell it today you would earn a total of 356,666 from holding Liquid Bitcoin USD or generate 67.57% return on investment over 30 days.
Pair Corralation between Liquid Bitcoin and Coinbase Ethereum
0.96
| Time Period | 2 Months [change] |
| Direction | Positive |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Diversification Opportunities for Liquid Bitcoin and Coinbase Ethereum
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding Liquid Bitcoin USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Ethereum USD 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 Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of Liquid Bitcoin i.e. Liquid Bitcoin and Coinbase Ethereum go up and down completely randomly.