This module allows you to analyze existing cross correlation between Quoine Bitcoin USD and LakeBTC Bitcoin USD. You can compare the effects of market volatilities on Quoine Bitcoin and LakeBTC 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 Quoine Bitcoin with a short position of LakeBTC Bitcoin. See also your portfolio center
. Please also check ongoing floating volatility patterns of Quoine Bitcoin
and LakeBTC Bitcoin
Quoine Bitcoin USD vs LakeBTC Bitcoin USD
Assuming 30 trading days horizon, Quoine Bitcoin USD is expected to under-perform the LakeBTC Bitcoin. In addition to that, Quoine Bitcoin is 1.18 times more volatile than LakeBTC Bitcoin USD. It trades about -0.19 of its total potential returns per unit of risk. LakeBTC Bitcoin USD is currently generating about -0.18 per unit of volatility. If you would invest 1,746,547 in LakeBTC Bitcoin USD on December 18, 2017 and sell it today you would lose (640,547) from holding LakeBTC Bitcoin USD or give up 36.68% of portfolio value 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 Quoine Bitcoin USD and LakeBTC Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on LakeBTC Bitcoin USD and Quoine 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 Quoine Bitcoin USD are associated (or correlated) with LakeBTC Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LakeBTC Bitcoin USD has no effect on the direction of Quoine Bitcoin i.e. Quoine Bitcoin and LakeBTC Bitcoin go up and down completely randomly.
Over the last 30 days Quoine Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.
Over the last 30 days LakeBTC Bitcoin USD has generated negative risk-adjusted returns adding no value to investors with long positions.