Correlation Between BTCS and Federated Strategic
Can any of the company-specific risk be diversified away by investing in both BTCS and Federated Strategic 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 BTCS and Federated Strategic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BTCS Inc and Federated Strategic Value, you can compare the effects of market volatilities on BTCS and Federated Strategic 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 BTCS with a short position of Federated Strategic. Check out your portfolio center. Please also check ongoing floating volatility patterns of BTCS and Federated Strategic.
Diversification Opportunities for BTCS and Federated Strategic
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BTCS and Federated is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding BTCS Inc and Federated Strategic Value in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federated Strategic Value and BTCS 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 BTCS Inc are associated (or correlated) with Federated Strategic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federated Strategic Value has no effect on the direction of BTCS i.e., BTCS and Federated Strategic go up and down completely randomly.
Pair Corralation between BTCS and Federated Strategic
Given the investment horizon of 90 days BTCS Inc is expected to generate 25.87 times more return on investment than Federated Strategic. However, BTCS is 25.87 times more volatile than Federated Strategic Value. It trades about 0.1 of its potential returns per unit of risk. Federated Strategic Value is currently generating about 0.17 per unit of risk. If you would invest 253.00 in BTCS Inc on June 5, 2025 and sell it today you would earn a total of 155.00 from holding BTCS Inc or generate 61.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BTCS Inc vs. Federated Strategic Value
Performance |
| Timeline |
| BTCS Inc |
| Federated Strategic Value |
BTCS and Federated Strategic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BTCS and Federated Strategic
The main advantage of trading using opposite BTCS and Federated Strategic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BTCS position performs unexpectedly, Federated Strategic 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 Federated Strategic will offset losses from the drop in Federated Strategic's long position.The idea behind BTCS Inc and Federated Strategic Value 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.| Federated Strategic vs. Barings Active Short | Federated Strategic vs. Qs Growth Fund | Federated Strategic vs. Auer Growth Fund | Federated Strategic vs. Small Midcap Dividend Income |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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