Correlation Between Zedge and BitFuFu Warrant
Can any of the company-specific risk be diversified away by investing in both Zedge and BitFuFu Warrant 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 Zedge and BitFuFu Warrant into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Zedge Inc and BitFuFu Warrant, you can compare the effects of market volatilities on Zedge and BitFuFu Warrant 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 Zedge with a short position of BitFuFu Warrant. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zedge and BitFuFu Warrant.
Diversification Opportunities for Zedge and BitFuFu Warrant
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Zedge and BitFuFu is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding Zedge Inc and BitFuFu Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Warrant and Zedge 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 Zedge Inc are associated (or correlated) with BitFuFu Warrant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BitFuFu Warrant has no effect on the direction of Zedge i.e., Zedge and BitFuFu Warrant go up and down completely randomly.
Pair Corralation between Zedge and BitFuFu Warrant
Given the investment horizon of 90 days Zedge is expected to generate 5.59 times less return on investment than BitFuFu Warrant. But when comparing it to its historical volatility, Zedge Inc is 3.03 times less risky than BitFuFu Warrant. It trades about 0.04 of its potential returns per unit of risk. BitFuFu Warrant is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 35.00 in BitFuFu Warrant on September 12, 2024 and sell it today you would earn a total of 14.87 from holding BitFuFu Warrant or generate 42.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 37.78% |
| Values | Daily Returns |
Zedge Inc vs. BitFuFu Warrant
Performance |
| Timeline |
| Zedge Inc |
| BitFuFu Warrant |
Zedge and BitFuFu Warrant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zedge and BitFuFu Warrant
The main advantage of trading using opposite Zedge and BitFuFu Warrant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zedge position performs unexpectedly, BitFuFu Warrant 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 Warrant will offset losses from the drop in BitFuFu Warrant's long position.| Zedge vs. Twilio Inc | Zedge vs. Meta Platforms | Zedge vs. Alphabet Inc Class C | Zedge vs. Alphabet Inc Class A |
| BitFuFu Warrant vs. Radcom | BitFuFu Warrant vs. United Parks Resorts | BitFuFu Warrant vs. Xponential Fitness | BitFuFu Warrant vs. Zedge Inc |
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 Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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