10. December 2018ShareFacebookTwitterLinkedInxingemail
What good is Bitcoin and the strongly correlated crypto market as a random Asset? Decoupled from the traditional markets from the crypto-market? And how strong the volatility is bitcoin?
The sizes of the correlation and volatility are just for institutional investors: A low correlation with traditional markets such as the S&P500, the DAX or the Dow Jones would be that the crypto-market for institutional investors could be interesting. It would be for a greater diversification of the portfolio is helpful. Another Monitor, the volatility is high volatility and the associated risk deters institutional investors.
Since the beginning of November, we keep track of how Bitcoin fails in comparison to traditional markets. We look, therefore, on the correlation in the last month, on a sliding correlation and a sliding volatility. The last two values are calculated for each day based on the last 30 days. Since the correlations within the crypto market behavior very similar to BTC for institutional investors, is currently the most interesting, we focus mostly on the Bitcoin price.
of The 14. November commenced sale on the crypto-market. The volatility is also back. The decoupling of the rates of Bitcoin, XRP, and Ethereum, we responded in the second to last week, has now given way again to a high correlation:
also, you can restrict the view on Bitcoin, qualitatively, the results are undoubtedly transferable
correlation: crypto-currencies vs. traditional marketThe correlation to the Dow Jones and S&P500 are slightly decreased, but have made room for a larger correlation with the DAX. Bitcoin is similar to the uncorrelated to the S&P 500 index, the Dow Jones and the DAX, such as Oil, while Gold still remains the entkoppelste Asset:
This picture is confirmed when looking at the current correlations. Almost all Assets have with respect to Bitcoin, a correlation of about 0.2. Gold itself continues to evolve almost independently of Bitcoin:
Bitcoins volatility: And you continue to rise!
The Trend of the last week. Bitcoin and, to a lesser extent Oil have an increasing volatility, which seems to be currently running in saturation. The rest of the considered Assets behavior is still stable:
Furthermore, the crypto market is still a bit of an Investment. The rising volatility depends on the falling rate of return. Currently, the 30-day-averaged daily rate of return has fallen to -2 percent. This is significantly below that of Gold, the indices SP500, Dow Jones and Dax, and Oil. Even the relatively poor Asset Oil has a rate of return that is 0.5 percent better than that of Bitcoin.
in This case, the yield is currently more likely for a Trader, the Short Position use, interesting, as for long-term investors. Nevertheless, it is positive that the coupling between Bitcoin and the us markets eased again.