Pair Correlation Between LocalBitcoins Bitcoin and Bitfinex Bitcoin

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
Symbolsvs
 LocalBitcoins Bitcoin USD  vs   Bitfinex Bitcoin USD

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 11,698 
(7,347)  38.58%
Market Cap: 4.4 B
(45.04)

Bitfinex

Bitcoin on Bitfinex in USD
 11,743 
(2,112)  15.24%
Market Cap: 11350.4 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 3.2 times more return on investment than Bitfinex Bitcoin. However, LocalBitcoins Bitcoin is 3.2 times more volatile than Bitfinex Bitcoin USD. It trades about 0.05 of its potential returns per unit of risk. Bitfinex Bitcoin USD is currently generating about -0.14 per unit of risk. If you would invest  2,195,996  in LocalBitcoins Bitcoin USD on December 17, 2017 and sell it today you would lose (1,026,200)  from holding LocalBitcoins Bitcoin USD or give up 46.73% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Bitfinex Bitcoin
0.51

Parameters

Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin USD and Bitfinex Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitfinex Bitcoin USD and LocalBitcoins Bitcoin 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 LocalBitcoins Bitcoin USD are associated (or correlated) with Bitfinex Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitfinex Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Bitfinex Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD

  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

LocalBitcoins Bitcoin USD

Pair trading matchups for LocalBitcoins Bitcoin

Bitfinex Bitcoin USD

  
0 

Risk-Adjusted Performance

Over the last 30 days Bitfinex Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.

Bitfinex Bitcoin USD

Pair trading matchups for Bitfinex Bitcoin