Correlation Between BTCS and AES

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

By analyzing existing cross correlation between BTCS Inc and The AES, you can compare the effects of market volatilities on BTCS and AES 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 BTCS with a short position of AES. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCS and AES.

Diversification Opportunities for BTCS and AES

0.0

Correlation Coefficient

BTCS  AES

Pay attention - limited upside

The 3 months correlation between BTCS and AES is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding BTCS Inc and The AES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on AES and BTCS 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 BTCS Inc are associated (or correlated) with AES. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of AES has no effect on the direction of BTCS i.e., BTCS and AES go up and down completely randomly.

Pair Corralation between BTCS and AES

If you would invest  171.00  in BTCS Inc on May 4, 2025 and sell it today you would earn a total of  235.00  from holding BTCS Inc or generate 137.43% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

BTCS Inc  vs.  The AES

BTCS Inc

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BTCS Inc are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile fundamental indicators, BTCS unveiled solid returns over the last few months and may actually be approaching a breakup point.

AES

Risk-Adjusted Performance

OK

Over the last 90 days The AES has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, AES is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with BTCS and AES

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

The idea behind BTCS Inc and The AES 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.