Correlation Between BitFrontier Capital and BlockQuarry Corp

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

Diversification Opportunities for BitFrontier Capital and BlockQuarry Corp

0.03

Correlation Coefficient

BitFrontier Capital  BlockQuarry Corp

Significant diversification

The 3 months correlation between BitFrontier and BlockQuarry is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding BitFrontier Capital Holdings and BlockQuarry Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BlockQuarry Corp 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 BlockQuarry Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BlockQuarry Corp has no effect on the direction of BitFrontier Capital i.e., BitFrontier Capital and BlockQuarry Corp go up and down completely randomly.

Pair Corralation between BitFrontier Capital and BlockQuarry Corp

Given the investment horizon of 90 days BitFrontier Capital Holdings is expected to generate 1.66 times more return on investment than BlockQuarry Corp. However, BitFrontier Capital is 1.66 times more volatile than BlockQuarry Corp. It trades about 0.16 of its potential returns per unit of risk. BlockQuarry Corp is currently generating about 0.16 per unit of risk. If you would invest  0.06  in BitFrontier Capital Holdings on May 2, 2025 and sell it today you would earn a total of  0.09  from holding BitFrontier Capital Holdings or generate 150.0% return on investment over 90 days.

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

BitFrontier Capital Holdings  vs.  BlockQuarry Corp

BitFrontier Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BitFrontier Capital Holdings are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly weak fundamental indicators, BitFrontier Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

BlockQuarry Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BlockQuarry Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. In spite of rather inconsistent basic indicators, BlockQuarry Corp exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with BitFrontier Capital and BlockQuarry Corp

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

The idea behind BitFrontier Capital Holdings and BlockQuarry Corp 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.