This module allows you to analyze existing cross correlation between StocksExchange Bitcoin USD and Liquid Bitcoin USD. You can compare the effects of market volatilities on StocksExchange Bitcoin and Liquid 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 StocksExchange Bitcoin with a short position of Liquid Bitcoin. See also your portfolio center. Please also check ongoing floating volatility patterns of StocksExchange Bitcoin and Liquid Bitcoin.
|Horizon||30 Days Login to change|
Compared to the overall equity markets, risk-adjusted returns on investments in StocksExchange Bitcoin USD are ranked lower than 4 (%) of all global equities and portfolios over the last 30 days. In spite of rather fragile fundamental drivers, StocksExchange Bitcoin exhibited solid returns over the last few months and may actually be approaching a breakup point.
|Liquid Bitcoin USD|
Over the last 30 days Liquid 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 September 2019. The current disturbance may also be a sign of long term up-swing for the entity investors.
StocksExchange Bitcoin and Liquid Bitcoin Volatility Contrast
Predicted Return Density
StocksExchange Bitcoin USD vs. Liquid Bitcoin USD
Assuming 30 trading days horizon, StocksExchange Bitcoin USD is expected to generate 3.79 times more return on investment than Liquid Bitcoin. However, StocksExchange Bitcoin is 3.79 times more volatile than Liquid Bitcoin USD. It trades about 0.07 of its potential returns per unit of risk. Liquid Bitcoin USD is currently generating about -0.06 per unit of risk. If you would invest 1,215,667 in StocksExchange Bitcoin USD on July 27, 2019 and sell it today you would lose (167,744) from holding StocksExchange Bitcoin USD or give up 13.8% of portfolio value over 30 days.
Pair Corralation between StocksExchange Bitcoin and Liquid Bitcoin
|Time Period||2 Months [change]|
Diversification Opportunities for StocksExchange Bitcoin and Liquid Bitcoin
Overlapping area represents the amount of risk that can be diversified away by holding StocksExchange Bitcoin USD and Liquid Bitcoin USD in the same portfolio assuming nothing else is changed. The correlation between historical prices or returns on Liquid Bitcoin USD and StocksExchange 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 StocksExchange Bitcoin USD are associated (or correlated) with Liquid Bitcoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liquid Bitcoin USD has no effect on the direction of StocksExchange Bitcoin i.e. StocksExchange Bitcoin and Liquid Bitcoin go up and down completely randomly.
See also your portfolio center. Please also try Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.