Correlation Between BitFrontier Capital and Blockchain Industries

Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital and Blockchain Industries 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 BitFrontier Capital and Blockchain Industries into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for BitFrontier Capital and Blockchain Industries

0.23

Correlation Coefficient

BitFrontier Capital  Blockchain Industries

Modest diversification

The 3 months correlation between BitFrontier and Blockchain is 0.23. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and Blockchain Industries in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Blockchain Industries and BitFrontier Capital 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 BitFrontier Capital Holdings are associated (or correlated) with Blockchain Industries. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Blockchain Industries has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and Blockchain Industries go up and down completely randomly.

Pair Corralation between BitFrontier Capital and Blockchain Industries

Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to under-perform the Blockchain Industries. In addition to that, BitFrontier Capital is 1.46 times more volatile than Blockchain Industries. It trades about -0.02 of its total potential returns per unit of risk. Blockchain Industries is currently generating about 0.01 per unit of volatility. If you would invest  1.17  in Blockchain Industries on April 24, 2025 and sell it today you would lose (0.39) from holding Blockchain Industries or give up 33.33% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

BitFrontier Capital Holdings  vs.  Blockchain Industries

BitFrontier Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days BitFrontier Capital Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. Despite unsteady performance in the last few months, the Stock's fundamental indicators remain fairly strong which may send shares a bit higher in August 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Blockchain Industries

Risk-Adjusted Performance

Very Weak

Over the last 90 days Blockchain Industries has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Blockchain Industries is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with BitFrontier Capital and Blockchain Industries

The main advantage of trading using opposite BitFrontier Capital and Blockchain Industries positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital position performs unexpectedly, Blockchain Industries 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 Blockchain Industries will offset losses from the drop in Blockchain Industries' long position.

The idea behind BitFrontier Capital Holdings and Blockchain Industries 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.