This module allows you to analyze existing cross correlation between LiveCoin BlueCoin USD and HitBTC DigitalNote USD. You can compare the effects of market volatilities on LiveCoin BlueCoin and HitBTC DigitalNote 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 BlueCoin with a short position of HitBTC DigitalNote. See also your portfolio center
. Please also check ongoing floating volatility patterns of LiveCoin BlueCoin
and HitBTC DigitalNote
LiveCoin BlueCoin USD vs HitBTC DigitalNote USD
Assuming 30 trading days horizon, LiveCoin BlueCoin USD is expected to generate 1.33 times more return on investment than HitBTC DigitalNote. However, LiveCoin BlueCoin is 1.33 times more volatile than HitBTC DigitalNote USD. It trades about -0.02 of its potential returns per unit of risk. HitBTC DigitalNote USD is currently generating about -0.34 per unit of risk. If you would invest 0.68 in LiveCoin BlueCoin USD on February 22, 2018 and sell it today you would lose (0.13) from holding LiveCoin BlueCoin USD or give up 19.24% 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 BlueCoin USD and HitBTC DigitalNote USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigitalNote USD and LiveCoin BlueCoin 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 BlueCoin USD are associated (or correlated) with HitBTC DigitalNote. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigitalNote USD has no effect on the direction of LiveCoin BlueCoin i.e. LiveCoin BlueCoin and HitBTC DigitalNote go up and down completely randomly.
Over the last 30 days LiveCoin BlueCoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC DigitalNote USD has generated negative risk-adjusted returns adding no value to investors with long positions.