This module allows you to analyze existing cross correlation between LiveCoin Emercoin USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on LiveCoin Emercoin 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 Emercoin with a short position of Bitstamp Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of LiveCoin Emercoin
and Bitstamp Ethereum
LiveCoin Emercoin USD vs Bitstamp Ethereum USD
Assuming 30 trading days horizon, LiveCoin Emercoin USD is expected to generate 1.9 times more return on investment than Bitstamp Ethereum. However, LiveCoin Emercoin is 1.9 times more volatile than Bitstamp Ethereum USD. It trades about -0.04 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.41 per unit of risk. If you would invest 443.00 in LiveCoin Emercoin USD on February 17, 2018 and sell it today you would lose (75.00) from holding LiveCoin Emercoin USD or give up 16.93% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Overlapping area represents the amount of risk that can be diversified away by holding LiveCoin Emercoin 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 Emercoin 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 Emercoin 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 Emercoin i.e. LiveCoin Emercoin and Bitstamp Ethereum go up and down completely randomly.
Over the last 30 days LiveCoin Emercoin 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.