Correlation Between BitFrontier Capital and First BITCoin

Can any of the company-specific risk be diversified away by investing in both BitFrontier Capital 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 BitFrontier Capital and First BITCoin 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 First BITCoin Capital, you can compare the effects of market volatilities on BitFrontier Capital 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 BitFrontier Capital with a short position of First BITCoin. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFrontier Capital and First BITCoin.

Diversification Opportunities for BitFrontier Capital and First BITCoin

0.42

Correlation Coefficient

BitFrontier Capital  First BITCoin

Very weak diversification

The 3 months correlation between BitFrontier and First is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital 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 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 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 BitFrontier Capital i.e., BitFrontier Capital and First BITCoin go up and down completely randomly.

Pair Corralation between BitFrontier Capital and First BITCoin

Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to generate 2.9 times more return on investment than First BITCoin. However, BitFrontier Capital is 2.9 times more volatile than First BITCoin Capital. It trades about 0.15 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  0.07  in BitFrontier Capital Holdings on May 1, 2025 and sell it today you would earn a total of  0.08  from holding BitFrontier Capital Holdings or generate 114.29% return on investment over 90 days.

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

BitFrontier Capital Holdings  vs.  First BITCoin Capital

BitFrontier Capital

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in BitFrontier Capital Holdings are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, BitFrontier Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

First BITCoin Capital

Risk-Adjusted Performance

Very Weak

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

Pair Trading with BitFrontier Capital and First BITCoin

The main advantage of trading using opposite BitFrontier Capital and First BITCoin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFrontier Capital 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 BitFrontier Capital 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.

Check out your portfolio center.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.