This module allows you to analyze existing cross correlation between Neraex Bitcoin USD and ExtStock Bitcoin USD. You can compare the effects of market volatilities on Neraex Bitcoin and ExtStock 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 Neraex Bitcoin with a short position of ExtStock Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of Neraex Bitcoin and ExtStock Bitcoin.
|Horizon||30 Days Login to change|
|Neraex Bitcoin USD|
Over the last 30 days Neraex 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.
|ExtStock Bitcoin USD|
Over the last 30 days ExtStock 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.
Neraex Bitcoin and ExtStock Bitcoin Volatility Contrast
Predicted Return Density
Neraex Bitcoin USD vs. ExtStock Bitcoin USD
Assuming 30 trading days horizon, Neraex Bitcoin USD is expected to generate 0.99 times more return on investment than ExtStock Bitcoin. However, Neraex Bitcoin USD is 1.01 times less risky than ExtStock Bitcoin. It trades about -0.03 of its potential returns per unit of risk. ExtStock Bitcoin USD is currently generating about -0.03 per unit of risk. If you would invest 1,200,445 in Neraex Bitcoin USD on July 22, 2019 and sell it today you would lose (168,467) from holding Neraex Bitcoin USD or give up 14.03% of portfolio value over 30 days.
Pair Corralation between Neraex Bitcoin and ExtStock Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for Neraex Bitcoin and ExtStock Bitcoin
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Neraex Bitcoin USD and ExtStock Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on ExtStock Bitcoin USD and Neraex 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 Neraex Bitcoin USD are associated (or correlated) with ExtStock Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ExtStock Bitcoin USD has no effect on the direction of Neraex Bitcoin i.e. Neraex Bitcoin and ExtStock Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.