Correlation Between Wisekey International and BitFuFu
Can any of the company-specific risk be diversified away by investing in both Wisekey International 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 Wisekey International and BitFuFu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Wisekey International Holding and BitFuFu Class A, you can compare the effects of market volatilities on Wisekey International 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 Wisekey International with a short position of BitFuFu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wisekey International and BitFuFu.
Diversification Opportunities for Wisekey International and BitFuFu
-0.68 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Wisekey and BitFuFu is -0.68. Overlapping area represents the amount of risk that can be diversified away by holding Wisekey International Holding 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 Wisekey International 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 Wisekey International Holding 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 Wisekey International i.e., Wisekey International and BitFuFu go up and down completely randomly.
Pair Corralation between Wisekey International and BitFuFu
Given the investment horizon of 90 days Wisekey International is expected to generate 11.62 times less return on investment than BitFuFu. But when comparing it to its historical volatility, Wisekey International Holding is 1.29 times less risky than BitFuFu. It trades about 0.0 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 Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wisekey International Holding vs. BitFuFu Class A
Performance |
| Timeline |
| Wisekey International |
| BitFuFu Class A |
Wisekey International and BitFuFu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wisekey International and BitFuFu
The main advantage of trading using opposite Wisekey International and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wisekey International 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.| Wisekey International vs. Scully Royalty | Wisekey International vs. Donnelley Financial Solutions | Wisekey International vs. Heritage Global | Wisekey International vs. Oppenheimer 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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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