Correlation Between BitFuFu and Sphere 3D
Can any of the company-specific risk be diversified away by investing in both BitFuFu and Sphere 3D 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 BitFuFu and Sphere 3D into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFuFu Class A and Sphere 3D Corp, you can compare the effects of market volatilities on BitFuFu and Sphere 3D 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 BitFuFu with a short position of Sphere 3D. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFuFu and Sphere 3D.
Diversification Opportunities for BitFuFu and Sphere 3D
Poor diversification
The 3 months correlation between BitFuFu and Sphere is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Class A and Sphere 3D Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sphere 3D Corp and BitFuFu 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 BitFuFu Class A are associated (or correlated) with Sphere 3D. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sphere 3D Corp has no effect on the direction of BitFuFu i.e., BitFuFu and Sphere 3D go up and down completely randomly.
Pair Corralation between BitFuFu and Sphere 3D
Given the investment horizon of 90 days BitFuFu Class A is expected to generate 0.85 times more return on investment than Sphere 3D. However, BitFuFu Class A is 1.18 times less risky than Sphere 3D. It trades about 0.05 of its potential returns per unit of risk. Sphere 3D Corp is currently generating about -0.03 per unit of risk. If you would invest 423.00 in BitFuFu Class A on January 12, 2025 and sell it today you would earn a total of 15.00 from holding BitFuFu Class A or generate 3.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BitFuFu Class A vs. Sphere 3D Corp
Performance |
| Timeline |
| BitFuFu Class A |
| Sphere 3D Corp |
BitFuFu and Sphere 3D Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFuFu and Sphere 3D
The main advantage of trading using opposite BitFuFu and Sphere 3D positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu position performs unexpectedly, Sphere 3D 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 Sphere 3D will offset losses from the drop in Sphere 3D's long position.| BitFuFu vs. ServiceNow | BitFuFu vs. Nok Airlines Public | BitFuFu vs. Cadence Design Systems | BitFuFu vs. Ryanair Holdings PLC |
| Sphere 3D vs. Society Pass | Sphere 3D vs. Marin Software | Sphere 3D vs. Trust Stamp | Sphere 3D vs. Infobird Co |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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