Correlation Between CNA Financial and BitFuFu

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

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

Diversification Opportunities for CNA Financial and BitFuFu

-0.09

Correlation Coefficient

CNA Financial  BitFuFu

Good diversification

The 3 months correlation between CNA and BitFuFu is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding CNA Financial 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 CNA 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 CNA Financial 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 CNA Financial i.e., CNA Financial and BitFuFu go up and down completely randomly.

Pair Corralation between CNA Financial and BitFuFu

Considering the 90-day investment horizon CNA Financial is expected to generate 1.67 times less return on investment than BitFuFu. But when comparing it to its historical volatility, CNA Financial is 3.39 times less risky than BitFuFu. It trades about 0.07 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest  366.00  in BitFuFu Class A on May 27, 2025 and sell it today you would earn a total of  12.00  from holding BitFuFu Class A or generate 3.28% return on investment over 90 days.

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

CNA Financial  vs.  BitFuFu Class A

CNA Financial

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CNA Financial are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, CNA Financial is not utilizing all of its potentials. The latest stock price disturbance, may contribute to short-term losses for the investors.

BitFuFu Class A

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively weak technical and fundamental indicators, BitFuFu may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Pair Trading with CNA Financial and BitFuFu

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

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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.