Correlation Between BGC and BitFuFu
Can any of the company-specific risk be diversified away by investing in both BGC and BitFuFu 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 BGC and BitFuFu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BGC Group and BitFuFu Class A, you can compare the effects of market volatilities on BGC and BitFuFu 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 BGC with a short position of BitFuFu. Check out your portfolio center. Please also check ongoing floating volatility patterns of BGC and BitFuFu.
Diversification Opportunities for BGC and BitFuFu
Very weak diversification
The 3 months correlation between BGC and BitFuFu is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding BGC Group and BitFuFu Class A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Class A and BGC 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 BGC Group are associated (or correlated) with BitFuFu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Class A has no effect on the direction of BGC i.e., BGC and BitFuFu go up and down completely randomly.
Pair Corralation between BGC and BitFuFu
Considering the 90-day investment horizon BGC Group is expected to generate 0.48 times more return on investment than BitFuFu. However, BGC Group is 2.07 times less risky than BitFuFu. It trades about 0.19 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.06 per unit of risk. If you would invest 914.00 in BGC Group on August 24, 2024 and sell it today you would earn a total of 102.00 from holding BGC Group or generate 11.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
BGC Group vs. BitFuFu Class A
Performance |
| Timeline |
| BGC Group |
| BitFuFu Class A |
BGC and BitFuFu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BGC and BitFuFu
The main advantage of trading using opposite BGC and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BGC position performs unexpectedly, BitFuFu 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 BitFuFu will offset losses from the drop in BitFuFu's long position.| BGC vs. Timken Company | BGC vs. Western Copper and | BGC vs. World Houseware Limited | BGC vs. United Guardian |
| BitFuFu vs. Raymond James Financial | BitFuFu vs. The Charles Schwab | BitFuFu vs. The Charles Schwab | BitFuFu vs. BGC Group |
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 CEOs Directory module to screen CEOs from public companies around the world.
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