Correlation Between BitFuFu Warrant and Top KingWin

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

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

Diversification Opportunities for BitFuFu Warrant and Top KingWin

0.1

Correlation Coefficient

BitFuFu Warrant  Top KingWin

Average diversification

The 3 months correlation between BitFuFu and Top is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Warrant and Top KingWin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Top KingWin and BitFuFu Warrant 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 BitFuFu Warrant are associated (or correlated) with Top KingWin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Top KingWin has no effect on the direction of BitFuFu Warrant i.e., BitFuFu Warrant and Top KingWin go up and down completely randomly.

Pair Corralation between BitFuFu Warrant and Top KingWin

Assuming the 90 days horizon BitFuFu Warrant is expected to generate 1.67 times more return on investment than Top KingWin. However, BitFuFu Warrant is 1.67 times more volatile than Top KingWin. It trades about 0.01 of its potential returns per unit of risk. Top KingWin is currently generating about -0.15 per unit of risk. If you would invest  39.00  in BitFuFu Warrant on February 3, 2025 and sell it today you would lose (8.00) from holding BitFuFu Warrant or give up 20.51% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	85.94%
Values	Daily Returns

BitFuFu Warrant  vs.  Top KingWin

BitFuFu Warrant

Risk-Adjusted Performance

Very Weak

Over the last 90 days BitFuFu Warrant has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly inconsistent basic indicators, BitFuFu Warrant may actually be approaching a critical reversion point that can send shares even higher in June 2025.

Top KingWin

Risk-Adjusted Performance

Very Weak

Over the last 90 days Top KingWin has generated negative risk-adjusted returns adding no value to investors with long positions. Despite uncertain performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in June 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Pair Trading with BitFuFu Warrant and Top KingWin

The main advantage of trading using opposite BitFuFu Warrant and Top KingWin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu Warrant position performs unexpectedly, Top KingWin 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 Top KingWin will offset losses from the drop in Top KingWin's long position.

The idea behind BitFuFu Warrant and Top KingWin 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 Stocks Directory module to find actively traded stocks across global markets.