Correlation Between BitFuFu and NFT

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Can any of the company-specific risk be diversified away by investing in both BitFuFu and NFT 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 NFT 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 NFT Limited, you can compare the effects of market volatilities on BitFuFu and NFT 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 NFT. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFuFu and NFT.

Diversification Opportunities for BitFuFu and NFT

0.66
  Correlation Coefficient
 NFT

Poor diversification

The 3 months correlation between BitFuFu and NFT is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Class A and NFT Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NFT Limited 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 NFT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NFT Limited has no effect on the direction of BitFuFu i.e., BitFuFu and NFT go up and down completely randomly.

Pair Corralation between BitFuFu and NFT

Given the investment horizon of 90 days BitFuFu Class A is expected to generate 1.04 times more return on investment than NFT. However, BitFuFu is 1.04 times more volatile than NFT Limited. It trades about -0.02 of its potential returns per unit of risk. NFT Limited is currently generating about -0.18 per unit of risk. If you would invest  445.00  in BitFuFu Class A on January 8, 2025 and sell it today you would lose (30.00) from holding BitFuFu Class A or give up 6.74% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy100.0%
ValuesDaily Returns

BitFuFu Class A  vs.  NFT Limited

 Performance 
       Timeline  
BitFuFu Class A 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days BitFuFu Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in May 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.
NFT Limited 

Risk-Adjusted Performance

Very Weak

 
Weak
 
Strong
Over the last 90 days NFT Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite weak performance in the last few months, the Stock's forward indicators remain fairly strong which may send shares a bit higher in May 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

BitFuFu and NFT Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with BitFuFu and NFT

The main advantage of trading using opposite BitFuFu and NFT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu position performs unexpectedly, NFT 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 NFT will offset losses from the drop in NFT's long position.
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The idea behind BitFuFu Class A and NFT Limited 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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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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.

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