This module allows you to analyze existing cross correlation between Lykke Ethereum USD and Gemini Ethereum USD. You can compare the effects of market volatilities on Lykke Ethereum and Gemini Ethereum 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 Lykke Ethereum with a short position of Gemini Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Lykke Ethereum
and Gemini Ethereum
Over the last 30 days Lykke Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Gemini Ethereum USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Lykke Ethereum and Gemini Ethereum Volatility Contrast
Lykke Ethereum USD vs. Gemini Ethereum USD
Assuming 30 trading days horizon, Lykke Ethereum is expected to generate 2.64 times less return on investment than Gemini Ethereum. But when comparing it to its historical volatility, Lykke Ethereum USD is 1.01 times less risky than Gemini Ethereum. It trades about 0.01 of its potential returns per unit of risk. Gemini Ethereum USD is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 13,108 in Gemini Ethereum USD on December 17, 2018 and sell it today you would lose (942.00) from holding Gemini Ethereum USD or give up 7.19% of portfolio value over 30 days.
Pair Corralation between Lykke Ethereum and Gemini Ethereum
|Time Period||2 Months [change]|
Diversification Opportunities for Lykke Ethereum and Gemini Ethereum
No risk reduction
Overlapping area represents the amount of risk that can be diversified away by holding Lykke Ethereum USD and Gemini Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Gemini Ethereum USD and Lykke Ethereum 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 Lykke Ethereum USD are associated (or correlated) with Gemini Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemini Ethereum USD has no effect on the direction of Lykke Ethereum i.e. Lykke Ethereum and Gemini Ethereum go up and down completely randomly.