This module allows you to analyze existing cross correlation between LocalBitcoins Bitcoin USD and Bitfinex Bitcoin USD. You can compare the effects of market volatilities on LocalBitcoins Bitcoin and Bitfinex Bitcoin 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 LocalBitcoins Bitcoin with a short position of Bitfinex Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of LocalBitcoins Bitcoin and Bitfinex Bitcoin.
|Time Horizon||30 Days Login to change|
LocalBitcoins Bitcoin USD vs. Bitfinex Bitcoin USD
Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 10.3 times more return on investment than Bitfinex Bitcoin. However, LocalBitcoins Bitcoin is 10.3 times more volatile than Bitfinex Bitcoin USD. It trades about 0.08 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about -0.2 per unit of risk. If you would invest 1,128,500 in LocalBitcoins Bitcoin USD on May 20, 2018 and sell it today you would lose (488,665) from holding LocalBitcoins Bitcoin USD or give up 43.3% of portfolio value over 30 days.