Correlation Between First BITCoin and MSCI ACWI

Can any of the company-specific risk be diversified away by investing in both First BITCoin and MSCI ACWI 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 First BITCoin and MSCI ACWI into the same portfolio, which is an essential part of the fundamental portfolio management process.

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

Diversification Opportunities for First BITCoin and MSCI ACWI

-0.79

Correlation Coefficient

First BITCoin  MSCI ACWI

Pay attention - limited upside

The 3 months correlation between First and MSCI is -0.79. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and MSCI ACWI exAUCONSUMER in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MSCI ACWI exAUCONSUMER and First BITCoin 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 First BITCoin Capital are associated (or correlated) with MSCI ACWI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MSCI ACWI exAUCONSUMER has no effect on the direction of First BITCoin i.e., First BITCoin and MSCI ACWI go up and down completely randomly.

Pair Corralation between First BITCoin and MSCI ACWI

Assuming the 90 days horizon First BITCoin Capital is expected to under-perform the MSCI ACWI. In addition to that, First BITCoin is 50.11 times more volatile than MSCI ACWI exAUCONSUMER. It trades about -0.13 of its total potential returns per unit of risk. MSCI ACWI exAUCONSUMER is currently generating about 0.21 per unit of volatility. If you would invest  2,473  in MSCI ACWI exAUCONSUMER on May 2, 2025 and sell it today you would earn a total of  60.00  from holding MSCI ACWI exAUCONSUMER or generate 2.43% return on investment over 90 days.

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

First BITCoin Capital  vs.  MSCI ACWI exAUCONSUMER

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.

MSCI ACWI exAUCONSUMER

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in MSCI ACWI exAUCONSUMER are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite quite persistent basic indicators, MSCI ACWI is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Pair Trading with First BITCoin and MSCI ACWI

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

The idea behind First BITCoin Capital and MSCI ACWI exAUCONSUMER 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.