Correlation Between Bitcoin Fund and FirstService Corp

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

By analyzing existing cross correlation between Bitcoin Fund Unit and FirstService Corp, you can compare the effects of market volatilities on Bitcoin Fund and FirstService 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 Bitcoin Fund with a short position of FirstService Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin Fund and FirstService Corp.

Diversification Opportunities for Bitcoin Fund and FirstService Corp

0.63

Correlation Coefficient

Bitcoin Fund  FirstService Corp

Poor diversification

The 3 months correlation between Bitcoin and FirstService is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin Fund Unit and FirstService Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on FirstService Corp and Bitcoin Fund 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 Bitcoin Fund Unit are associated (or correlated) with FirstService Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of FirstService Corp has no effect on the direction of Bitcoin Fund i.e., Bitcoin Fund and FirstService Corp go up and down completely randomly.

Pair Corralation between Bitcoin Fund and FirstService Corp

Assuming the 90 days trading horizon Bitcoin Fund is expected to generate 1.63 times less return on investment than FirstService Corp. In addition to that, Bitcoin Fund is 1.1 times more volatile than FirstService Corp. It trades about 0.06 of its total potential returns per unit of risk. FirstService Corp is currently generating about 0.11 per unit of volatility. If you would invest  23,935  in FirstService Corp on July 1, 2025 and sell it today you would earn a total of  2,487  from holding FirstService Corp or generate 10.39% return on investment over 90 days.

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

Bitcoin Fund Unit  vs.  FirstService Corp

Bitcoin Fund Unit

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin Fund Unit are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of very weak basic indicators, Bitcoin Fund may actually be approaching a critical reversion point that can send shares even higher in October 2025.

FirstService Corp

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in FirstService Corp are ranked lower than 8 (%) of all global equities and portfolios over the last 90 days. In spite of very unfluctuating basic indicators, FirstService Corp may actually be approaching a critical reversion point that can send shares even higher in October 2025.

Pair Trading with Bitcoin Fund and FirstService Corp

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

The idea behind Bitcoin Fund Unit and FirstService 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 Stocks Directory module to find actively traded stocks across global markets.