Correlation Analysis 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.
Horizon     30 Days    Login   to change
Symbolsvs
Check Efficiency

Comparative Performance

LocalBitcoins Bitcoin USD  
33

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. Despite nearly weak fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.
Gemini Bitcoin USD  
00

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. Despite latest weak performance, the Crypto's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the entity investors.

LocalBitcoins Bitcoin and Gemini Bitcoin Volatility Contrast

 Predicted Return Density 
      Returns 

LocalBitcoins Bitcoin USD  vs.  Gemini Bitcoin USD

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 10,320 
(463.58)  4.30%
Market Cap: 876.2 M
  

Gemini

Bitcoin on Gemini in USD

 10,045 
(36.53)  0.36%
Market Cap: 55.6 B
 275.00 
2.66% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 2.85 times more return on investment than Gemini Bitcoin. However, LocalBitcoins Bitcoin is 2.85 times more volatile than Gemini Bitcoin USD. It trades about 0.05 of its potential returns per unit of risk. Gemini Bitcoin USD is currently generating about -0.03 per unit of risk. If you would invest  1,277,988  in LocalBitcoins Bitcoin USD on July 22, 2019 and sell it today you would lose (245,988)  from holding LocalBitcoins Bitcoin USD or give up 19.25% of portfolio value over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and Gemini Bitcoin

0.64
Time Period2 Months [change]
DirectionPositive 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

Diversification Opportunities for LocalBitcoins Bitcoin and Gemini 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 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.
See also your portfolio center. Please also try Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.


 
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