This module allows you to analyze existing cross correlation between QuadrigaCX Bitcoin USD and Bitstamp Bitcoin USD. You can compare the effects of market volatilities on QuadrigaCX Bitcoin and Bitstamp 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 QuadrigaCX Bitcoin with a short position of Bitstamp Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of QuadrigaCX Bitcoin
and Bitstamp Bitcoin
QuadrigaCX Bitcoin USD vs Bitstamp Bitcoin USD
Assuming 30 trading days horizon, QuadrigaCX Bitcoin USD is expected to generate 0.92 times more return on investment than Bitstamp Bitcoin. However, QuadrigaCX Bitcoin USD is 1.09 times less risky than Bitstamp Bitcoin. It trades about -0.16 of its potential returns per unit of risk. Bitstamp Bitcoin USD is currently generating about -0.15 per unit of risk. If you would invest 1,878,958 in QuadrigaCX Bitcoin USD on December 17, 2017 and sell it today you would lose (558,957) from holding QuadrigaCX Bitcoin USD or give up 29.75% of portfolio value over 30 days.
|Time Period||1 Month [change]|
Almost no diversification
Overlapping area represents the amount of risk that can be diversified away by holding QuadrigaCX Bitcoin USD and Bitstamp Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Bitstamp Bitcoin USD and QuadrigaCX 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 QuadrigaCX Bitcoin USD are associated (or correlated) with Bitstamp Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bitstamp Bitcoin USD has no effect on the direction of QuadrigaCX Bitcoin i.e. QuadrigaCX Bitcoin and Bitstamp Bitcoin go up and down completely randomly.
Over the last 30 days QuadrigaCX Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days Bitstamp Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.