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Correlate Bitcoin prices with anything

kimonolabs.com

11–20 of 32 posts

Re: Correlate Bitcoin prices with anything

#11
Neat visualization, but as the website itself notes at the bottom (in fine print): "Correlation doesn't necessarily mean causation. Be careful when using correlations to draw causal inferences for trading or research."

Here's another fun tool where you can correlate search activity by drawing an arbitrary time series: https://www.google.com/trends/correlate/draw?p=us

Re: Correlate Bitcoin prices with anything

#12
There is a correlation to bitcoin repo on github. Is that the cumulative number of repo on github with "bitcoin" tag? or is it the activity on github.com/bitcoin?

Personally, I would think that correlation to the number of bitcoin repo on github does not make sense because that is the cumulative number. However, if you can correlate to average recent activities on all bitcoin repo on github, that could be very interesting. :)

Re: Correlate Bitcoin prices with anything

#13
post #11

Neat visualization, but as the website itself notes at the bottom (in fine print): "Correlation doesn't necessarily mean causation. Be careful when using correlations to draw causal inferences for trading or research." Here's another fun tool where you can correlate search activity by drawing an arbitrary time series: https://www.google.com/trends/correlate/draw?p=us

Exactly. gotta read the fine print :) We think this could get more interesting with time though. It was really cool when we got our first couple days of data and were able to see the basic principles of economics at work by looking at the anti-correlation of supply with price!

Re: Correlate Bitcoin prices with anything

#14
post #11

Neat visualization, but as the website itself notes at the bottom (in fine print): "Correlation doesn't necessarily mean causation. Be careful when using correlations to draw causal inferences for trading or research." Here's another fun tool where you can correlate search activity by drawing an arbitrary time series: https://www.google.com/trends/correlate/draw?p=us

[deleted]

Re: Correlate Bitcoin prices with anything

#15
post #11

Neat visualization, but as the website itself notes at the bottom (in fine print): "Correlation doesn't necessarily mean causation. Be careful when using correlations to draw causal inferences for trading or research." Here's another fun tool where you can correlate search activity by drawing an arbitrary time series: https://www.google.com/trends/correlate/draw?p=us

Why would you need a causal inference to make a trade?

Re: Correlate Bitcoin prices with anything

#17

Bloomberg is a dinosaur.

Sometimes dinosaurs are awesome, though. See the video of the older commentator at Bloomberg interviewing the daffy twit at Newsweek who "outed" Dorian Nakamoto:

http://www.bloomberg.com/video/did-newsweek-uncover-the-wron...

One of those rare videos that's worth putting up with a 30-second ad.

Re: Correlate Bitcoin prices with anything

#19
This is great, but will only be of use when much more liquidity is bought to bitcoin. Right now, the Mt Gox and Newsweek debacles are the only things artificially pushing btc prices below their upwards paths. Why - is something that remains to be determined. Perhaps someone BIG needs to buy into bitcoin before the next rally ?

Re: Correlate Bitcoin prices with anything

#20

This seems to be correlation of the price level, not correlation of the returns. It's pretty much a useless metric.

Not sure I understand the point... ? The reason for correlating against price is in hope of finding a leading indicator to movement so that you can better understand the relationship between bitcoin price and some other metric. This would in theory help you ultimatly make better returns by better predicting when to buy or sell...
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