Correlation Between BitFuFu and Raymond James
Can any of the company-specific risk be diversified away by investing in both BitFuFu and Raymond James 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 Raymond James 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 Raymond James Financial, you can compare the effects of market volatilities on BitFuFu and Raymond James 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 Raymond James. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFuFu and Raymond James.
Diversification Opportunities for BitFuFu and Raymond James
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between BitFuFu and Raymond is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Class A and Raymond James Financial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Raymond James Financial 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 Raymond James. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Raymond James Financial has no effect on the direction of BitFuFu i.e., BitFuFu and Raymond James go up and down completely randomly.
Pair Corralation between BitFuFu and Raymond James
Given the investment horizon of 90 days BitFuFu Class A is expected to generate 22.97 times more return on investment than Raymond James. However, BitFuFu is 22.97 times more volatile than Raymond James Financial. It trades about 0.02 of its potential returns per unit of risk. Raymond James Financial is currently generating about 0.07 per unit of risk. If you would invest 1,019 in BitFuFu Class A on August 27, 2024 and sell it today you would lose (483.00) from holding BitFuFu Class A or give up 47.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BitFuFu Class A vs. Raymond James Financial
Performance |
| Timeline |
| BitFuFu Class A |
| Raymond James Financial |
BitFuFu and Raymond James Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFuFu and Raymond James
The main advantage of trading using opposite BitFuFu and Raymond James positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu position performs unexpectedly, Raymond James 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 Raymond James will offset losses from the drop in Raymond James' long position.| BitFuFu vs. Dalata Hotel Group | BitFuFu vs. Insteel Industries | BitFuFu vs. Wingstop | BitFuFu vs. Summit Environmental |
| Raymond James vs. Washington Federal | Raymond James vs. Truist Financial | Raymond James vs. The Charles Schwab | Raymond James vs. Associated Banc Corp |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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