Correlation Analysis Between LocalBitcoins Bitcoin and Bitstamp Bitcoin

This module allows you to analyze existing cross correlation between LocalBitcoins Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on LocalBitcoins Bitcoin and Bitstamp 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 Bitstamp Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of LocalBitcoins Bitcoin and Bitstamp Bitcoin.
Horizon     30 Days    Login   to change
Check Efficiency

Comparative Performance

LocalBitcoins Bitcoin USD  

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. Despite nearly weak fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.
Bitstamp Bitcoin USD  

Risk-Adjusted Performance

Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Even with considerably steady technical indicators, Bitstamp Bitcoin is not utilizing all of its potentials. The current stock price chaos, may contribute to medium term losses for the stakeholders.

LocalBitcoins Bitcoin and Bitstamp Bitcoin Volatility Contrast

 Predicted Return Density 

LocalBitcoins Bitcoin USD  vs.  Bitstamp Bitcoin USD


Bitcoin on LocalBitcoins in USD

(1,558)  13.63%
Market Cap: 876.2 M


Bitcoin on Bitstamp in USD

(113.84)  1.12%
Market Cap: 337.9 B
1.85% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 2.88 times more return on investment than Bitstamp Bitcoin. However, LocalBitcoins Bitcoin is 2.88 times more volatile than Bitstamp Bitcoin USD. It trades about 0.06 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about -0.01 per unit of risk. If you would invest  1,220,000  in LocalBitcoins Bitcoin USD on July 26, 2019 and sell it today you would lose (114,084)  from holding LocalBitcoins Bitcoin USD or give up 9.35% of portfolio value over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and Bitstamp Bitcoin

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for LocalBitcoins Bitcoin and Bitstamp Bitcoin

LocalBitcoins Bitcoin USD diversification synergy

Poor diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp 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 Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Bitstamp Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Piotroski F Score module to get piotroski f score based on binary analysis strategy of nine different fundamentals.