Correlation Between CryptoStar Corp and BitFrontier Capital

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

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

Diversification Opportunities for CryptoStar Corp and BitFrontier Capital

-0.26

Correlation Coefficient

CryptoStar Corp  BitFrontier Capital

Very good diversification

The 3 months correlation between CryptoStar and BitFrontier is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding CryptoStar Corp and BitFrontier Capital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFrontier Capital and CryptoStar Corp 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 CryptoStar Corp are associated (or correlated) with BitFrontier Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFrontier Capital has no effect on the direction of CryptoStar Corp i.e., CryptoStar Corp and BitFrontier Capital go up and down completely randomly.

Pair Corralation between CryptoStar Corp and BitFrontier Capital

Assuming the 90 days horizon CryptoStar Corp is expected to generate 8.64 times less return on investment than BitFrontier Capital. But when comparing it to its historical volatility, CryptoStar Corp is 2.31 times less risky than BitFrontier Capital. It trades about 0.05 of its potential returns per unit of risk. BitFrontier Capital Holdings is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  0.03  in BitFrontier Capital Holdings on July 20, 2025 and sell it today you would earn a total of  0.10  from holding BitFrontier Capital Holdings or generate 333.33% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.46%
Values	Daily Returns

CryptoStar Corp  vs.  BitFrontier Capital Holdings

CryptoStar Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CryptoStar Corp are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile basic indicators, CryptoStar Corp reported solid returns over the last few months and may actually be approaching a breakup point.

BitFrontier Capital

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in BitFrontier Capital Holdings are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite fairly unsteady fundamental indicators, BitFrontier Capital demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CryptoStar Corp and BitFrontier Capital

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

The idea behind CryptoStar Corp and BitFrontier Capital Holdings 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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.