This module allows you to analyze existing cross correlation between Poloniex Ethereum USD and Quoine Ethereum USD. You can compare the effects of market volatilities on Poloniex Ethereum and Quoine 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 Quoine Ethereum. See also your portfolio center. Please also check ongoing floating volatility patterns of Poloniex Ethereum and Quoine Ethereum.
Assuming 30 trading days horizon, Poloniex Ethereum USD is expected to under-perform the Quoine Ethereum. In addition to that, Poloniex Ethereum is 1.28 times more volatile than Quoine Ethereum USD. It trades about -0.07 of its total potential returns per unit of risk. Quoine Ethereum USD is currently generating about -0.07 per unit of volatility. If you would invest 52,446 in Quoine Ethereum USD on June 20, 2018 and sell it today you would lose (6,426) from holding Quoine Ethereum USD or give up 12.25% of portfolio value over 30 days.
Pair Corralation between Poloniex Ethereum and Quoine Ethereum
Overlapping area represents the amount of risk that can be diversified away by holding Poloniex Ethereum USD and Quoine Ethereum USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Quoine 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 Quoine Ethereum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Quoine Ethereum USD has no effect on the direction of Poloniex Ethereum i.e. Poloniex Ethereum and Quoine Ethereum go up and down completely randomly.
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