This module allows you to analyze existing cross correlation between LiveCoin Adzcoin USD and Cexio Ethereum USD. You can compare the effects of market volatilities on LiveCoin Adzcoin and Cexio 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 LiveCoin Adzcoin with a short position of Cexio Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of LiveCoin Adzcoin
and Cexio Ethereum
LiveCoin Adzcoin USD vs Cexio Ethereum USD
Assuming 30 trading days horizon, LiveCoin Adzcoin USD is expected to generate 2.8 times more return on investment than Cexio Ethereum. However, LiveCoin Adzcoin is 2.8 times more volatile than Cexio Ethereum USD. It trades about -0.12 of its potential returns per unit of risk. Cexio Ethereum USD is currently generating about -0.35 per unit of risk. If you would invest 6.33 in LiveCoin Adzcoin USD on February 15, 2018 and sell it today you would lose (2.79) from holding LiveCoin Adzcoin USD or give up 44.01% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding LiveCoin Adzcoin USD and Cexio Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Cexio Ethereum USD and LiveCoin Adzcoin 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 LiveCoin Adzcoin USD are associated (or correlated) with Cexio Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cexio Ethereum USD has no effect on the direction of LiveCoin Adzcoin i.e. LiveCoin Adzcoin and Cexio Ethereum go up and down completely randomly.
Over the last 30 days LiveCoin Adzcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Cexio Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.