This module allows you to analyze existing cross correlation between Liquid Bitcoin USD and itBit Bitcoin USD. You can compare the effects of market volatilities on Liquid 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 Liquid Bitcoin with a short position of itBit Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Liquid Bitcoin and itBit Bitcoin.
|Horizon||30 Days Login to change|
|Liquid Bitcoin USD|
Over the last 30 days Liquid Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong basic indicators, Liquid Bitcoin is not utilizing all of its potentials. The current stock price disturbance, may contribute to short term losses for the investors.
|itBit Bitcoin USD|
Over the last 30 days itBit Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
Liquid Bitcoin and itBit Bitcoin Volatility Contrast
Predicted Return Density
Liquid Bitcoin USD vs. itBit Bitcoin USD
Assuming 30 trading days horizon, Liquid Bitcoin USD is expected to generate 0.94 times more return on investment than itBit Bitcoin. However, Liquid Bitcoin USD is 1.07 times less risky than itBit Bitcoin. It trades about -0.01 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about -0.07 per unit of risk. If you would invest 1,130,000 in Liquid Bitcoin USD on July 26, 2019 and sell it today you would lose (112,204) from holding Liquid Bitcoin USD or give up 9.93% of portfolio value over 30 days.
Pair Corralation between Liquid Bitcoin and itBit Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Liquid Bitcoin and itBit Bitcoin
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Liquid 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 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 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 Liquid Bitcoin i.e. Liquid Bitcoin and itBit Bitcoin go up and down completely randomly.
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