Correlation Between First BITCoin and BTCS
Can any of the company-specific risk be diversified away by investing in both First BITCoin and BTCS 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 First BITCoin and BTCS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First BITCoin Capital and BTCS Inc, you can compare the effects of market volatilities on First BITCoin and BTCS 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 First BITCoin with a short position of BTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of First BITCoin and BTCS.
Diversification Opportunities for First BITCoin and BTCS
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between First and BTCS is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and BTCS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTCS Inc and First BITCoin 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 First BITCoin Capital are associated (or correlated) with BTCS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BTCS Inc has no effect on the direction of First BITCoin i.e., First BITCoin and BTCS go up and down completely randomly.
Pair Corralation between First BITCoin and BTCS
If you would invest 116.00 in BTCS Inc on August 30, 2024 and sell it today you would earn a total of 261.00 from holding BTCS Inc or generate 225.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.73% |
| Values | Daily Returns |
First BITCoin Capital vs. BTCS Inc
Performance |
| Timeline |
| First BITCoin Capital |
| BTCS Inc |
First BITCoin and BTCS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First BITCoin and BTCS
The main advantage of trading using opposite First BITCoin and BTCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First BITCoin position performs unexpectedly, BTCS 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 BTCS will offset losses from the drop in BTCS's long position.| First BITCoin vs. Woodbrook Group Holdings | First BITCoin vs. Cal Bay Intl | First BITCoin vs. LGBTQ Loyalty Holdings | First BITCoin vs. Sysorex |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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