This module allows you to analyze existing cross correlation between LiveCoin LEOcoin USD and HitBTC DigiByte USD. You can compare the effects of market volatilities on LiveCoin LEOcoin and HitBTC DigiByte 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 LEOcoin with a short position of HitBTC DigiByte. See also your portfolio center
. Please also check ongoing floating volatility patterns of LiveCoin LEOcoin
and HitBTC DigiByte
LiveCoin LEOcoin USD vs HitBTC DigiByte USD
Assuming 30 trading days horizon, LiveCoin LEOcoin USD is expected to generate 0.54 times more return on investment than HitBTC DigiByte. However, LiveCoin LEOcoin USD is 1.84 times less risky than HitBTC DigiByte. It trades about -0.06 of its potential returns per unit of risk. HitBTC DigiByte USD is currently generating about -0.19 per unit of risk. If you would invest 28.22 in LiveCoin LEOcoin USD on February 21, 2018 and sell it today you would lose (2.01) from holding LiveCoin LEOcoin USD or give up 7.12% 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 LEOcoin USD and HitBTC DigiByte USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on HitBTC DigiByte USD and LiveCoin LEOcoin 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 LEOcoin USD are associated (or correlated) with HitBTC DigiByte. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HitBTC DigiByte USD has no effect on the direction of LiveCoin LEOcoin i.e. LiveCoin LEOcoin and HitBTC DigiByte go up and down completely randomly.
Over the last 30 days LiveCoin LEOcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days HitBTC DigiByte USD has generated negative risk-adjusted returns adding no value to investors with long positions.