Correlation Between Bittensor and Freysa AI

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

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

Diversification Opportunities for Bittensor and Freysa AI

0.73

Correlation Coefficient

Bittensor  Freysa AI

Poor diversification

The 3 months correlation between Bittensor and Freysa is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Bittensor and Freysa AI in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Freysa AI and Bittensor 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 Bittensor are associated (or correlated) with Freysa AI. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Freysa AI has no effect on the direction of Bittensor i.e., Bittensor and Freysa AI go up and down completely randomly.

Pair Corralation between Bittensor and Freysa AI

Assuming the 90 days trading horizon Bittensor is expected to generate 0.79 times more return on investment than Freysa AI. However, Bittensor is 1.26 times less risky than Freysa AI. It trades about 0.21 of its potential returns per unit of risk. Freysa AI is currently generating about 0.11 per unit of risk. If you would invest  34,562  in Bittensor on April 23, 2025 and sell it today you would earn a total of  6,828  from holding Bittensor or generate 19.76% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Significant
Accuracy	100.0%
Values	Daily Returns

Bittensor  vs.  Freysa AI

Bittensor

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Bittensor are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, Bittensor exhibited solid returns over the last few months and may actually be approaching a breakup point.

Freysa AI

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Freysa AI are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady forward indicators, Freysa AI exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Bittensor and Freysa AI

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

The idea behind Bittensor and Freysa AI 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.