This module allows you to analyze existing cross correlation between LiveCoin CapriCoin USD and Bitfinex NEO USD. You can compare the effects of market volatilities on LiveCoin CapriCoin and Bitfinex NEO 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 CapriCoin with a short position of Bitfinex NEO. See also your portfolio center. Please also check ongoing floating volatility patterns of LiveCoin CapriCoin and Bitfinex NEO.
Assuming 30 trading days horizon, LiveCoin CapriCoin USD is expected to under-perform the Bitfinex NEO. In addition to that, LiveCoin CapriCoin is 1.21 times more volatile than Bitfinex NEO USD. It trades about -0.29 of its total potential returns per unit of risk. Bitfinex NEO USD is currently generating about -0.28 per unit of volatility. If you would invest 8,360 in Bitfinex NEO USD on April 23, 2018 and sell it today you would lose (3,040) from holding Bitfinex NEO USD or give up 36.36% of portfolio value over 30 days.
Pair Corralation between LiveCoin CapriCoin and Bitfinex NEO
Overlapping area represents the amount of risk that can be diversified away by holding LiveCoin CapriCoin USD and Bitfinex NEO USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex NEO USD and LiveCoin CapriCoin 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 CapriCoin USD are associated (or correlated) with Bitfinex NEO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex NEO USD has no effect on the direction of LiveCoin CapriCoin i.e. LiveCoin CapriCoin and Bitfinex NEO go up and down completely randomly.
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