Correlation Analysis Between LocalBitcoins Bitcoin and Bitstamp Ethereum

This module allows you to analyze existing cross correlation between LocalBitcoins Bitcoin USD and Bitstamp Ethereum USD. You can compare the effects of market volatilities on LocalBitcoins Bitcoin 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 LocalBitcoins Bitcoin with a short position of Bitstamp Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of LocalBitcoins Bitcoin and Bitstamp Ethereum.
Horizon     30 Days    Login   to change
Compare 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 9 (%) of all global equities and portfolios over the last 30 days.
Bitstamp Ethereum USD  

Risk-Adjusted Performance

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

LocalBitcoins Bitcoin and Bitstamp Ethereum Volatility Contrast

 Predicted Return Density 

LocalBitcoins Bitcoin USD  vs.  Bitstamp Ethereum USD


Bitcoin on LocalBitcoins in USD

374.29  7.57%
Market Cap: 95.1 M


Ethereum on Bitstamp in USD

(3.23)  3.67%
Market Cap: 52.2 M
 Performance (%) 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 6.55 times more return on investment than Bitstamp Ethereum. However, LocalBitcoins Bitcoin is 6.55 times more volatile than Bitstamp Ethereum USD. It trades about 0.14 of its potential returns per unit of risk. Bitstamp Ethereum USD is currently generating about -0.3 per unit of risk. If you would invest  967,907  in LocalBitcoins Bitcoin USD on November 13, 2018 and sell it today you would lose (435,792)  from holding LocalBitcoins Bitcoin USD or give up 45.02% of portfolio value over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and Bitstamp Ethereum

Time Period2 Months [change]
ValuesDaily Returns

Diversification Opportunities for LocalBitcoins Bitcoin and Bitstamp Ethereum

LocalBitcoins Bitcoin USD diversification synergy

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin 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 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 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 LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Bitstamp Ethereum go up and down completely randomly.

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See also your portfolio center. Please also try Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.