Correlation Between Bitcoin SV and FTC

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

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

Diversification Opportunities for Bitcoin SV and FTC

-0.53

Correlation Coefficient

Bitcoin SV  FTC

Excellent diversification

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

Pair Corralation between Bitcoin SV and FTC

Assuming the 90 days trading horizon Bitcoin SV is expected to generate 1.77 times less return on investment than FTC. In addition to that, Bitcoin SV is 4.03 times more volatile than FTC. It trades about 0.03 of its total potential returns per unit of risk. FTC is currently generating about 0.19 per unit of volatility. If you would invest  0.28  in FTC on April 23, 2025 and sell it today you would earn a total of  0.07  from holding FTC or generate 23.25% return on investment over 90 days.

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

Bitcoin SV  vs.  FTC

Bitcoin SV

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bitcoin SV are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bitcoin SV may actually be approaching a critical reversion point that can send shares even higher in August 2025.

FTC

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in FTC are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady fundamental indicators, FTC exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bitcoin SV and FTC

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

The idea behind Bitcoin SV and FTC 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.