This module allows you to analyze existing cross correlation between LiveCoin E-Dinar Coin USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on LiveCoin E-Dinar and Bitstamp 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 E-Dinar with a short position of Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of LiveCoin E-Dinar
and Bitstamp Ethereum
LiveCoin E-Dinar Coin USD vs Bitstamp Ethereum USD
Assuming 30 trading days horizon, LiveCoin E-Dinar Coin USD is expected to generate 1.27 times more return on investment than Bitstamp Ethereum. However, LiveCoin E-Dinar is 1.27 times more volatile than Bitstamp Ethereum USD. It trades about -0.05 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.38 per unit of risk. If you would invest 2.29 in LiveCoin E-Dinar Coin USD on February 18, 2018 and sell it today you would lose (0.27) from holding LiveCoin E-Dinar Coin USD or give up 11.68% 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 E-Dinar Coin USD and Bitstamp Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Ethereum USD and LiveCoin E-Dinar 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 E-Dinar Coin USD are associated (or correlated) with Bitstamp Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Ethereum USD has no effect on the direction of LiveCoin E-Dinar i.e. LiveCoin E-Dinar and Bitstamp Ethereum go up and down completely randomly.
Over the last 30 days LiveCoin E-Dinar Coin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitstamp Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.