This module allows you to analyze existing cross correlation between P2PB2B Bitcoin USD and LocalBitcoins Bitcoin USD. You can compare the effects of market volatilities on P2PB2B Bitcoin and LocalBitcoins 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 P2PB2B Bitcoin with a short position of LocalBitcoins Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of P2PB2B Bitcoin and LocalBitcoins Bitcoin.
|Horizon||30 Days Login to change|
|P2PB2B Bitcoin USD|
Over the last 30 days P2PB2B Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Crypto's basic indicators remain somewhat strong which may send shares a bit higher in October 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
|LocalBitcoins Bitcoin USD|
Over the last 30 days LocalBitcoins Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile fundamental indicators, LocalBitcoins Bitcoin layed out solid returns over the last few months and may actually be approaching a breakup point.
P2PB2B Bitcoin and LocalBitcoins Bitcoin Volatility Contrast
P2PB2B Bitcoin USD vs. LocalBitcoins Bitcoin USD
Assuming 30 trading days horizon, P2PB2B Bitcoin USD is expected to under-perform the LocalBitcoins Bitcoin. But the crypto apears to be less risky and, when comparing its historical volatility, P2PB2B Bitcoin USD is 47.73 times less risky than LocalBitcoins Bitcoin. The crypto trades about -0.71 of its potential returns per unit of risk. The LocalBitcoins Bitcoin USD is currently generating about 0.71 of returns per unit of risk over similar time horizon. If you would invest 1,119,735 in LocalBitcoins Bitcoin USD on August 22, 2019 and sell it today you would earn a total of 804,861 from holding LocalBitcoins Bitcoin USD or generate 71.88% return on investment over 30 days.
Pair Corralation between P2PB2B Bitcoin and LocalBitcoins Bitcoin
|Time Period||3 Months [change]|
Diversification Opportunities for P2PB2B Bitcoin and LocalBitcoins Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding P2PB2B Bitcoin USD and LocalBitcoins Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LocalBitcoins Bitcoin USD and P2PB2B 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 P2PB2B Bitcoin USD are associated (or correlated) with LocalBitcoins Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LocalBitcoins Bitcoin USD has no effect on the direction of P2PB2B Bitcoin i.e. P2PB2B Bitcoin and LocalBitcoins Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Chance of Distress module to get analysis of equity chance of financial distress in the next 2 years.