Correlation Between Ubiquiti Networks and BitFuFu
Can any of the company-specific risk be diversified away by investing in both Ubiquiti Networks 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 Ubiquiti Networks and BitFuFu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ubiquiti Networks and BitFuFu Class A, you can compare the effects of market volatilities on Ubiquiti Networks 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 Ubiquiti Networks with a short position of BitFuFu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ubiquiti Networks and BitFuFu.
Diversification Opportunities for Ubiquiti Networks and BitFuFu
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ubiquiti and BitFuFu is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Ubiquiti Networks 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 Ubiquiti Networks 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 Ubiquiti Networks 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 Ubiquiti Networks i.e., Ubiquiti Networks and BitFuFu go up and down completely randomly.
Pair Corralation between Ubiquiti Networks and BitFuFu
Allowing for the 90-day total investment horizon Ubiquiti Networks is expected to generate 1.32 times less return on investment than BitFuFu. But when comparing it to its historical volatility, Ubiquiti Networks is 2.77 times less risky than BitFuFu. It trades about 0.03 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 999.00 in BitFuFu Class A on August 27, 2024 and sell it today you would lose (463.00) from holding BitFuFu Class A or give up 46.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ubiquiti Networks vs. BitFuFu Class A
Performance |
| Timeline |
| Ubiquiti Networks |
| BitFuFu Class A |
Ubiquiti Networks and BitFuFu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ubiquiti Networks and BitFuFu
The main advantage of trading using opposite Ubiquiti Networks and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ubiquiti Networks 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.| Ubiquiti Networks vs. Ichor Holdings | Ubiquiti Networks vs. Fabrinet | Ubiquiti Networks vs. Hello Group | Ubiquiti Networks vs. Ultra Clean Holdings |
| BitFuFu vs. Dalata Hotel Group | BitFuFu vs. Insteel Industries | BitFuFu vs. Wingstop | BitFuFu vs. Summit Environmental |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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