Correlation Between Erf Wireless and BitFuFu Warrant

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

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

Diversification Opportunities for Erf Wireless and BitFuFu Warrant

0.0

Correlation Coefficient

Erf Wireless  BitFuFu Warrant

Pay attention - limited upside

The 3 months correlation between Erf and BitFuFu is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Erf Wireless and BitFuFu Warrant in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BitFuFu Warrant and Erf Wireless 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 Erf Wireless 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 Erf Wireless i.e., Erf Wireless and BitFuFu Warrant go up and down completely randomly.

Pair Corralation between Erf Wireless and BitFuFu Warrant

If you would invest  0.01  in Erf Wireless on February 4, 2025 and sell it today you would earn a total of  0.00  from holding Erf Wireless or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	85.71%
Values	Daily Returns

Erf Wireless  vs.  BitFuFu Warrant

Erf Wireless

Risk-Adjusted Performance

Very Weak

Over the last 90 days Erf Wireless has generated negative risk-adjusted returns adding no value to investors with long positions. Despite somewhat strong technical and fundamental indicators, Erf Wireless is not utilizing all of its potentials. The recent stock price disturbance, may contribute to short-term losses for the investors.

BitFuFu Warrant

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Warrant are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of fairly weak basic indicators, BitFuFu Warrant showed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Erf Wireless and BitFuFu Warrant

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

The idea behind Erf Wireless and BitFuFu Warrant 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.