Correlation Between Eagle Pointome and BitFuFu

Can any of the company-specific risk be diversified away by investing in both Eagle Pointome 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 Eagle Pointome and BitFuFu into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Eagle Pointome and BitFuFu Class A, you can compare the effects of market volatilities on Eagle Pointome 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 Eagle Pointome with a short position of BitFuFu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eagle Pointome and BitFuFu.

Diversification Opportunities for Eagle Pointome and BitFuFu

0.58

Correlation Coefficient

Eagle Pointome  BitFuFu

Very weak diversification

The 3 months correlation between Eagle and BitFuFu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Eagle Pointome 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 Eagle Pointome 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 Eagle Pointome 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 Eagle Pointome i.e., Eagle Pointome and BitFuFu go up and down completely randomly.

Pair Corralation between Eagle Pointome and BitFuFu

Considering the 90-day investment horizon Eagle Pointome is expected to generate 0.24 times more return on investment than BitFuFu. However, Eagle Pointome is 4.25 times less risky than BitFuFu. It trades about -0.16 of its potential returns per unit of risk. BitFuFu Class A is currently generating about -0.11 per unit of risk. If you would invest  1,222  in Eagle Pointome on August 17, 2025 and sell it today you would lose (51.00) from holding Eagle Pointome or give up 4.17% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Eagle Pointome  vs.  BitFuFu Class A

Eagle Pointome

Risk-Adjusted Performance

Weakest

Over the last 90 days Eagle Pointome has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's forward indicators remain sound and the latest tumult on Wall Street may also be a sign of longer-term gains for the firm shareholders.

BitFuFu Class A

Risk-Adjusted Performance

Weakest

Over the last 90 days BitFuFu Class A has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable technical and fundamental indicators, BitFuFu is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Eagle Pointome and BitFuFu

The main advantage of trading using opposite Eagle Pointome and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eagle Pointome 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.

The idea behind Eagle Pointome and BitFuFu Class A pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.