Correlation Between BTCS and Inverse Nasdaq

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

By analyzing existing cross correlation between BTCS Inc and Inverse Nasdaq 100 Strategy, you can compare the effects of market volatilities on BTCS and Inverse Nasdaq 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 Inverse Nasdaq. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCS and Inverse Nasdaq.

Diversification Opportunities for BTCS and Inverse Nasdaq

0.3

Correlation Coefficient

BTCS  Inverse Nasdaq

Weak diversification

The 3 months correlation between BTCS and Inverse is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding BTCS Inc and Inverse Nasdaq 100 Strategy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Inverse Nasdaq 100 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 Inverse Nasdaq. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Inverse Nasdaq 100 has no effect on the direction of BTCS i.e., BTCS and Inverse Nasdaq go up and down completely randomly.

Pair Corralation between BTCS and Inverse Nasdaq

Given the investment horizon of 90 days BTCS Inc is expected to under-perform the Inverse Nasdaq. In addition to that, BTCS is 5.56 times more volatile than Inverse Nasdaq 100 Strategy. It trades about -0.09 of its total potential returns per unit of risk. Inverse Nasdaq 100 Strategy is currently generating about -0.04 per unit of volatility. If you would invest  11,844  in Inverse Nasdaq 100 Strategy on September 16, 2025 and sell it today you would lose (348.00) from holding Inverse Nasdaq 100 Strategy or give up 2.94% of portfolio value over 90 days.

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

BTCS Inc  vs.  Inverse Nasdaq 100 Strategy

BTCS Inc

Risk-Adjusted Performance

Weakest

Over the last 90 days BTCS Inc has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Inverse Nasdaq 100

Risk-Adjusted Performance

Weakest

Over the last 90 days Inverse Nasdaq 100 Strategy has generated negative risk-adjusted returns adding no value to fund investors. In spite of fairly strong basic indicators, Inverse Nasdaq is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with BTCS and Inverse Nasdaq

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

The idea behind BTCS Inc and Inverse Nasdaq 100 Strategy 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 Stocks Directory module to find actively traded stocks across global markets.