Correlation Between Stellus Capital and First BITCoin

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

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

Diversification Opportunities for Stellus Capital and First BITCoin

-0.53

Correlation Coefficient

Stellus Capital  First BITCoin

Excellent diversification

The 3 months correlation between Stellus and First is -0.53. Overlapping area represents the amount of risk that can be diversified away by holding Stellus Capital Investment and First BITCoin Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First BITCoin Capital and Stellus Capital 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 Stellus Capital Investment are associated (or correlated) with First BITCoin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First BITCoin Capital has no effect on the direction of Stellus Capital i.e., Stellus Capital and First BITCoin go up and down completely randomly.

Pair Corralation between Stellus Capital and First BITCoin

Considering the 90-day investment horizon Stellus Capital Investment is expected to generate 0.11 times more return on investment than First BITCoin. However, Stellus Capital Investment is 8.96 times less risky than First BITCoin. It trades about 0.21 of its potential returns per unit of risk. First BITCoin Capital is currently generating about -0.13 per unit of risk. If you would invest  1,244  in Stellus Capital Investment on May 1, 2025 and sell it today you would earn a total of  181.00  from holding Stellus Capital Investment or generate 14.55% return on investment over 90 days.

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

Stellus Capital Investment  vs.  First BITCoin Capital

Stellus Capital Inve

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Stellus Capital Investment are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental indicators, Stellus Capital displayed solid returns over the last few months and may actually be approaching a breakup point.

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.

Pair Trading with Stellus Capital and First BITCoin

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

The idea behind Stellus Capital Investment and First BITCoin Capital 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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.