Correlation Between Alerus Financial and BitFuFu

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

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

Diversification Opportunities for Alerus Financial and BitFuFu

0.18

Correlation Coefficient

Alerus Financial  BitFuFu

Average diversification

The 3 months correlation between Alerus and BitFuFu is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Alerus Financial Corp 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 Alerus Financial 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 Alerus Financial Corp 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 Alerus Financial i.e., Alerus Financial and BitFuFu go up and down completely randomly.

Pair Corralation between Alerus Financial and BitFuFu

Given the investment horizon of 90 days Alerus Financial Corp is expected to generate 0.36 times more return on investment than BitFuFu. However, Alerus Financial Corp is 2.77 times less risky than BitFuFu. It trades about 0.06 of its potential returns per unit of risk. BitFuFu Class A is currently generating about -0.09 per unit of risk. If you would invest  2,227  in Alerus Financial Corp on September 16, 2025 and sell it today you would earn a total of  121.00  from holding Alerus Financial Corp or generate 5.43% return on investment over 90 days.

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

Alerus Financial Corp  vs.  BitFuFu Class A

Alerus Financial Corp

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in Alerus Financial Corp are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Alerus Financial is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

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 weak performance in the last few months, the Stock's technical and fundamental indicators remain comparatively stable which may send shares a bit higher in January 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Pair Trading with Alerus Financial and BitFuFu

The main advantage of trading using opposite Alerus Financial and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alerus Financial 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 Alerus Financial Corp 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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.