This module allows you to analyze existing cross correlation between Poloniex Ethereum USD and Coinbase Ethereum USD. You can compare the effects of market volatilities on Poloniex Ethereum and Coinbase 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 Poloniex Ethereum with a short position of Coinbase Ethereum. See also your portfolio center
. Please also check ongoing floating volatility patterns of Poloniex Ethereum
and Coinbase Ethereum
Poloniex Ethereum USD vs Coinbase Ethereum USD
Assuming 30 trading days horizon, Poloniex Ethereum USD is expected to generate 0.77 times more return on investment than Coinbase Ethereum. However, Poloniex Ethereum USD is 1.3 times less risky than Coinbase Ethereum. It trades about 0.32 of its potential returns per unit of risk. Coinbase Ethereum USD is currently generating about 0.19 per unit of risk. If you would invest 63,390 in Poloniex Ethereum USD on December 21, 2017 and sell it today you would earn a total of 50,093 from holding Poloniex Ethereum USD or generate 79.02% return on investment over 30 days.
|Time Period||1 Month [change]|
Very poor diversification
Overlapping area represents the amount of risk that can be diversified away by holding Poloniex Ethereum USD and Coinbase Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Coinbase Ethereum USD and Poloniex 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 Poloniex Ethereum USD are associated (or correlated) with Coinbase Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coinbase Ethereum USD has no effect on the direction of Poloniex Ethereum i.e. Poloniex Ethereum and Coinbase Ethereum go up and down completely randomly.
Compared to the overall equity markets, risk-adjusted returns on investments in Poloniex Ethereum USD are ranked lower than 20 (%) of all global equities and portfolios over the last 30 days.
Compared to the overall equity markets, risk-adjusted returns on investments in Coinbase Ethereum USD are ranked lower than 12 (%) of all global equities and portfolios over the last 30 days.