Correlation Analysis Between LocalBitcoins Bitcoin and itBit Bitcoin

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

LocalBitcoins Bitcoin USD  vs.  itBit Bitcoin USD

LocalBitcoins

Bitcoin on LocalBitcoins in USD
 8,111 
1,589  16.38%
Market Cap: 6.4 B
  

itBit

Bitcoin on itBit in USD
 7,711 
93.76  1.23%
Market Cap: 167.4 B
 400.62 
4.94% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 5.12 times more return on investment than itBit Bitcoin. However, LocalBitcoins Bitcoin is 5.12 times more volatile than itBit Bitcoin USD. It trades about 0.12 of its potential returns per unit of risk. itBit Bitcoin USD is currently generating about 0.26 per unit of risk. If you would invest  790,599  in LocalBitcoins Bitcoin USD on June 23, 2018 and sell it today you would earn a total of  92,696  from holding LocalBitcoins Bitcoin USD or generate 11.72% return on investment over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and itBit Bitcoin

0.49
Time Period1 Month [change]
DirectionPositive 
StrengthWeak
Accuracy100.0%
ValuesDaily Returns

Diversification

Very weak diversification

Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin USD and itBit Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on itBit 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 itBit Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of itBit Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and itBit 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
itBit Bitcoin USD  
16 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in itBit Bitcoin USD are ranked lower than 16 (%) of all global equities and portfolios over the last 30 days.

itBit Bitcoin USD

Pair trading matchups for itBit Bitcoin

My Equities

My Current Equities and Potential Positions
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GOOG - USA Stock
Alphabet
Specialization
IT, Search Cloud And Integrated IT Services
Business Address1600 Amphitheatre Parkway
ExchangeNASDAQ
$1198.56

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