Correlation Analysis Between LocalBitcoins Bitcoin and Kraken Bitcoin

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

LocalBitcoins Bitcoin USD  vs.  Kraken Bitcoin USD

LocalBitcoins

Bitcoin on LocalBitcoins in USD

 7,122 
310.23  4.55%
Market Cap: 319 M
  

Kraken

Bitcoin on Kraken in USD

 6,395 
197.00  3.18%
Market Cap: 19.8 B
 727.45 
10.21% Risk Free Arbitrage
All Coins Arbitrage Correlation
 Performance (%) 
      Timeline 

Pair Volatility

Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 11.7 times more return on investment than Kraken Bitcoin. However, LocalBitcoins Bitcoin is 11.7 times more volatile than Kraken Bitcoin USD. It trades about 0.1 of its potential returns per unit of risk. Kraken Bitcoin USD is currently generating about 0.06 per unit of risk. If you would invest  848,600  in LocalBitcoins Bitcoin USD on September 15, 2018 and sell it today you would lose (191,004)  from holding LocalBitcoins Bitcoin USD or give up 22.51% of portfolio value over 30 days.

Pair Corralation between LocalBitcoins Bitcoin and Kraken Bitcoin

0.12
Time Period1 Month [change]
DirectionPositive 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Diversification

Average diversification

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

Comparative Volatility

 Predicted Return Density 
      Returns 
LocalBitcoins Bitcoin USD  
6 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 6 (%) of all global equities and portfolios over the last 30 days.
Kraken Bitcoin USD  
3 

Risk-Adjusted Performance

Compared to the overall equity markets, risk-adjusted returns on investments in Kraken Bitcoin USD are ranked lower than 3 (%) of all global equities and portfolios over the last 30 days.

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
$1092.25

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See also your portfolio center. Please also try Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.


 
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