Correlation Between Advent Technologies and First BITCoin

Can any of the company-specific risk be diversified away by investing in both Advent Technologies and First BITCoin at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Advent Technologies and First BITCoin into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Advent Technologies Holdings and First BITCoin Capital, you can compare the effects of market volatilities on Advent Technologies and First 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 Advent Technologies with a short position of First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Advent Technologies and First BITCoin.

Diversification Opportunities for Advent Technologies and First BITCoin

0.43

Correlation Coefficient

Advent Technologies  First BITCoin

Very weak diversification

The 3 months correlation between Advent and First is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Advent Technologies Holdings and First BITCoin Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First BITCoin Capital and Advent Technologies 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 Advent Technologies Holdings are associated (or correlated) with First BITCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First BITCoin Capital has no effect on the direction of Advent Technologies i.e., Advent Technologies and First BITCoin go up and down completely randomly.

Pair Corralation between Advent Technologies and First BITCoin

Assuming the 90 days horizon Advent Technologies Holdings is expected to generate 0.69 times more return on investment than First BITCoin. However, Advent Technologies Holdings is 1.46 times less risky than First BITCoin. It trades about -0.11 of its potential returns per unit of risk. First BITCoin Capital is currently generating about -0.13 per unit of risk. If you would invest  1.00  in Advent Technologies Holdings on May 7, 2025 and sell it today you would lose (0.44) from holding Advent Technologies Holdings or give up 44.0% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	98.39%
Values	Daily Returns

Advent Technologies Holdings  vs.  First BITCoin Capital

Advent Technologies

Risk-Adjusted Performance

Weakest

Over the last 90 days Advent Technologies Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain fairly stable which may send shares a bit higher in September 2025. The latest fuss may also be a sign of long-term up-swing for the venture sophisticated investors.

First BITCoin Capital

Risk-Adjusted Performance

Weakest

Over the last 90 days First BITCoin Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's fundamental indicators remain nearly stable which may send shares a bit higher in September 2025. The current disturbance may also be a sign of long-run up-swing for the company stockholders.

Pair Trading with Advent Technologies and First BITCoin

The main advantage of trading using opposite Advent Technologies and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Advent Technologies position performs unexpectedly, First BITCoin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in First BITCoin will offset losses from the drop in First BITCoin's long position.

The idea behind Advent Technologies Holdings and First BITCoin Capital pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.