This module allows you to analyze existing cross correlation between LocalBitcoins Bitcoin USD and Quoine Bitcoin USD. You can compare the effects of market volatilities on LocalBitcoins Bitcoin and Quoine 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 Quoine Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of LocalBitcoins Bitcoin
and Quoine Bitcoin
LocalBitcoins Bitcoin USD vs Quoine Bitcoin USD
Assuming 30 trading days horizon, LocalBitcoins Bitcoin USD is expected to generate 3.86 times more return on investment than Quoine Bitcoin. However, LocalBitcoins Bitcoin is 3.86 times more volatile than Quoine Bitcoin USD. It trades about 0.07 of its potential returns per unit of risk. Quoine Bitcoin USD is currently generating about -0.18 per unit of risk. If you would invest 2,195,996 in LocalBitcoins Bitcoin USD on December 17, 2017 and sell it today you would lose (773,996) from holding LocalBitcoins Bitcoin USD or give up 35.25% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Very weak diversification
Overlapping area represents the amount of risk that can be diversified away by holding LocalBitcoins Bitcoin USD and Quoine Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Quoine 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 Quoine Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoine Bitcoin USD has no effect on the direction of LocalBitcoins Bitcoin i.e. LocalBitcoins Bitcoin and Quoine Bitcoin go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in LocalBitcoins Bitcoin USD are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days.
Over the last 30 days Quoine Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.