Correlation Between Bitcoin and Foncire 7

Can any of the company-specific risk be diversified away by investing in both Bitcoin and Foncire 7 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 and Foncire 7 into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Bitcoin and Foncire 7 investissement, you can compare the effects of market volatilities on Bitcoin and Foncire 7 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 with a short position of Foncire 7. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bitcoin and Foncire 7.

Diversification Opportunities for Bitcoin and Foncire 7

-0.05

Correlation Coefficient

Bitcoin  Foncire 7

Good diversification

The 3 months correlation between Bitcoin and Foncire is -0.05. Overlapping area represents the amount of risk that can be diversified away by holding Bitcoin and Foncire 7 investissement in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Foncire 7 investissement and 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 Bitcoin are associated (or correlated) with Foncire 7. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Foncire 7 investissement has no effect on the direction of Bitcoin i.e., Bitcoin and Foncire 7 go up and down completely randomly.

Pair Corralation between Bitcoin and Foncire 7

Assuming the 90 days trading horizon Bitcoin is expected to under-perform the Foncire 7. But the crypto coin apears to be less risky and, when comparing its historical volatility, Bitcoin is 1.5 times less risky than Foncire 7. The crypto coin trades about -0.09 of its potential returns per unit of risk. The Foncire 7 investissement is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest  30.00  in Foncire 7 investissement on December 23, 2024 and sell it today you would earn a total of  10.00  from holding Foncire 7 investissement or generate 33.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	96.92%
Values	Daily Returns

Bitcoin  vs.  Foncire 7 investissement

Bitcoin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Bitcoin has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Crypto's fundamental indicators remain rather sound which may send shares a bit higher in April 2025. The latest tumult may also be a sign of longer-term up-swing for Bitcoin shareholders.

Foncire 7 investissement

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Foncire 7 investissement are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Foncire 7 sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin and Foncire 7

The main advantage of trading using opposite Bitcoin and Foncire 7 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bitcoin position performs unexpectedly, Foncire 7 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 Foncire 7 will offset losses from the drop in Foncire 7's long position.

The idea behind Bitcoin and Foncire 7 investissement 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.