Pair Correlation Between LocalBitcoins Bitcoin and Cexio Bitcoin

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

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 14,412 
3,696  34.49%
Market Cap: 8.4 B
 3,235 
22.45% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

Cexio

Bitcoin on Cexio in USD
 11,177 
71.99  0.65%
Market Cap: 217.5 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 2.76 times more return on investment than Cexio Bitcoin. However, LocalBitcoins Bitcoin is 2.76 times more volatile than Cexio Bitcoin USD. It trades about 0.05 of its potential returns per unit of risk. Cexio Bitcoin USD is currently generating about -0.1 per unit of risk. If you would invest  2,092,505  in LocalBitcoins Bitcoin USD on December 24, 2017 and sell it today you would lose (651,305)  from holding LocalBitcoins Bitcoin USD or give up 31.13% of portfolio value over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Cexio Bitcoin
0.69

Parameters

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

Diversification

Poor diversification

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

Cexio Bitcoin USD

  
0 

Risk-Adjusted Performance

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