Correlation Between Cornerstone Strategic and BTCS
Can any of the company-specific risk be diversified away by investing in both Cornerstone Strategic 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 Cornerstone Strategic and BTCS into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cornerstone Strategic Value and BTCS Inc, you can compare the effects of market volatilities on Cornerstone Strategic 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 Cornerstone Strategic with a short position of BTCS. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cornerstone Strategic and BTCS.
Diversification Opportunities for Cornerstone Strategic and BTCS
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cornerstone and BTCS is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cornerstone Strategic Value and BTCS Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BTCS Inc and Cornerstone Strategic 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 Cornerstone Strategic Value 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 Cornerstone Strategic i.e., Cornerstone Strategic and BTCS go up and down completely randomly.
Pair Corralation between Cornerstone Strategic and BTCS
Considering the 90-day investment horizon Cornerstone Strategic is expected to generate 16.49 times less return on investment than BTCS. But when comparing it to its historical volatility, Cornerstone Strategic Value is 24.9 times less risky than BTCS. It trades about 0.16 of its potential returns per unit of risk. BTCS Inc is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 249.00 in BTCS Inc on June 11, 2025 and sell it today you would earn a total of 171.00 from holding BTCS Inc or generate 68.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cornerstone Strategic Value vs. BTCS Inc
Performance |
| Timeline |
| Cornerstone Strategic |
| BTCS Inc |
Cornerstone Strategic and BTCS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cornerstone Strategic and BTCS
The main advantage of trading using opposite Cornerstone Strategic and BTCS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cornerstone Strategic 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.The idea behind Cornerstone Strategic Value and BTCS Inc 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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