Pair Correlation Between LocalBitcoins Bitcoin and Gemini Bitcoin

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

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 16,640 
711.49  4.47%
Market Cap: 4.4 B
 4,042 
24.29% Risk Free Arbitrage
All Coins Bitcoin Arbitrage Bitcoin Correlation

Gemini

Bitcoin on Gemini in USD
 12,598 
797.8  6.76%
Market Cap: 970.3 B
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 3.1 times more return on investment than Gemini Bitcoin. However, LocalBitcoins Bitcoin is 3.1 times more volatile than Gemini Bitcoin USD. It trades about 0.11 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about -0.07 per unit of risk. If you would invest  1,499,925  in LocalBitcoins Bitcoin USD on December 21, 2017 and sell it today you would earn a total of  92,926  from holding LocalBitcoins Bitcoin USD or generate 6.2% return on investment over 30 days.

Correlation Coefficient

Pair Corralation between LocalBitcoins Bitcoin and Gemini Bitcoin
0.65

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 Gemini Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gemini 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 Gemini Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Gemini Bitcoin go up and down completely randomly.

Comparative Volatility

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD

  
7 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 7 (%) of all global equities and portfolios over the last 30 days.

LocalBitcoins Bitcoin USD

Pair trading matchups for LocalBitcoins Bitcoin

Gemini Bitcoin USD

  
0 

Risk-Adjusted Performance

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

Gemini Bitcoin USD

Pair trading matchups for Gemini Bitcoin