Federalism is a form and system of government. This federalism system is based on democratic rules and institution. For the distribution of powers among central and regional level, we have European Federal Style which is based on weak central government and United States Style which is based on strong central government.
Capitalism is about the economic system. It is about the ownership on the mode of production and profit. Under the umbrella of capitalism, we can divide it into free-market capitalism, welfare capitalism , state capitalism, Mixed -Economy. Its different form is based on varying degree of free-market,public ownership, competition and social policies.
