Correlation Between Heritage Global and BitFuFu
Can any of the company-specific risk be diversified away by investing in both Heritage Global 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 Heritage Global and BitFuFu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heritage Global and BitFuFu Class A, you can compare the effects of market volatilities on Heritage Global 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 Heritage Global with a short position of BitFuFu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heritage Global and BitFuFu.
Diversification Opportunities for Heritage Global and BitFuFu
-0.4 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Heritage and BitFuFu is -0.4. Overlapping area represents the amount of risk that can be diversified away by holding Heritage Global 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 Heritage Global 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 Heritage Global 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 Heritage Global i.e., Heritage Global and BitFuFu go up and down completely randomly.
Pair Corralation between Heritage Global and BitFuFu
Given the investment horizon of 90 days Heritage Global is expected to generate 0.59 times more return on investment than BitFuFu. However, Heritage Global is 1.7 times less risky than BitFuFu. It trades about 0.15 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.0 per unit of risk. If you would invest 175.00 in Heritage Global on December 30, 2024 and sell it today you would earn a total of 50.00 from holding Heritage Global or generate 28.57% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Heritage Global vs. BitFuFu Class A
Performance |
Timeline |
Heritage Global |
BitFuFu Class A |
Heritage Global and BitFuFu Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Heritage Global and BitFuFu
The main advantage of trading using opposite Heritage Global and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heritage Global 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.Heritage Global vs. Scully Royalty | Heritage Global vs. Mercurity Fintech Holding | Heritage Global vs. Donnelley Financial Solutions | Heritage Global vs. Oppenheimer Holdings |
BitFuFu vs. Molecular Partners AG | BitFuFu vs. Radcom | BitFuFu vs. Nordic Semiconductor ASA | BitFuFu vs. MagnaChip Semiconductor |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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