Correlation Between Cal Bay and BitFrontier Capital

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

By analyzing existing cross correlation between Cal Bay Intl and BitFrontier Capital Holdings, you can compare the effects of market volatilities on Cal Bay and BitFrontier Capital 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 Cal Bay with a short position of BitFrontier Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cal Bay and BitFrontier Capital.

Diversification Opportunities for Cal Bay and BitFrontier Capital

0.0

Correlation Coefficient

Cal Bay  BitFrontier Capital

Pay attention - limited upside

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

Pair Corralation between Cal Bay and BitFrontier Capital

If you would invest  0.05  in BitFrontier Capital Holdings on July 3, 2025 and sell it today you would earn a total of  0.03  from holding BitFrontier Capital Holdings or generate 60.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	96.83%
Values	Daily Returns

Cal Bay Intl  vs.  BitFrontier Capital Holdings

Cal Bay Intl

Risk-Adjusted Performance

Weakest

Over the last 90 days Cal Bay Intl has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong basic indicators, Cal Bay is not utilizing all of its potentials. The recent stock price confusion, may contribute to short-horizon losses for the traders.

BitFrontier Capital

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in BitFrontier Capital Holdings are ranked lower than 9 (%) 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.

Pair Trading with Cal Bay and BitFrontier Capital

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

The idea behind Cal Bay Intl and BitFrontier Capital Holdings 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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.