Correlation Analysis Between Liquid Bitcoin and Coinbase Ethereum

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.
Horizon     30 Days    Login   to change
Compare Efficiency

Comparative Performance

Liquid Bitcoin USD  

Risk-Adjusted Performance

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

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 5 (%) of all global equities and portfolios over the last 30 days.

Liquid Bitcoin and Coinbase Ethereum Volatility Contrast

 Predicted Return Density 

Liquid Bitcoin USD  vs.  Coinbase Ethereum USD


Bitcoin on Liquid in USD

3.11  0.09%
Market Cap: 7 B


Ethereum on Coinbase in USD

(2.49)  2.03%
Market Cap: 85.1 M
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, Liquid Bitcoin USD is expected to under-perform the Coinbase Ethereum. But the crypto apears to be less risky and, when comparing its historical volatility, Liquid Bitcoin USD is 2.08 times less risky than Coinbase Ethereum. The crypto trades about -0.01 of its potential returns per unit of risk. The Coinbase Ethereum USD is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  10,750  in Coinbase Ethereum USD on January 18, 2019 and sell it today you would earn a total of  1,515  from holding Coinbase Ethereum USD or generate 14.09% return on investment over 30 days.

Pair Corralation between Liquid Bitcoin and Coinbase Ethereum

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for Liquid Bitcoin and Coinbase Ethereum

Liquid Bitcoin USD diversification synergy

Very weak 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.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked.
Explore Thematic Ideas
Explore Investing Ideas  

Coinbase Ethereum USD

Pair trading matchups for Coinbase Ethereum

See also your portfolio center. Please also try Pair Correlation module to compare performance and examine historical correlation between any two equity instruments.