Correlation Between BitFuFu and Enlivex Therapeutics
Can any of the company-specific risk be diversified away by investing in both BitFuFu and Enlivex Therapeutics 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 and Enlivex Therapeutics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFuFu Class A and Enlivex Therapeutics, you can compare the effects of market volatilities on BitFuFu and Enlivex Therapeutics 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 with a short position of Enlivex Therapeutics. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFuFu and Enlivex Therapeutics.
Diversification Opportunities for BitFuFu and Enlivex Therapeutics
0.25 | Correlation Coefficient |
Modest diversification
The 3 months correlation between BitFuFu and Enlivex is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Class A and Enlivex Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Enlivex Therapeutics and BitFuFu 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 Class A are associated (or correlated) with Enlivex Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Enlivex Therapeutics has no effect on the direction of BitFuFu i.e., BitFuFu and Enlivex Therapeutics go up and down completely randomly.
Pair Corralation between BitFuFu and Enlivex Therapeutics
Given the investment horizon of 90 days BitFuFu Class A is expected to under-perform the Enlivex Therapeutics. In addition to that, BitFuFu is 2.01 times more volatile than Enlivex Therapeutics. It trades about -0.04 of its total potential returns per unit of risk. Enlivex Therapeutics is currently generating about 0.05 per unit of volatility. If you would invest 141.00 in Enlivex Therapeutics on June 24, 2024 and sell it today you would earn a total of 10.00 from holding Enlivex Therapeutics or generate 7.09% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
BitFuFu Class A vs. Enlivex Therapeutics
Performance |
Timeline |
BitFuFu Class A |
Enlivex Therapeutics |
BitFuFu and Enlivex Therapeutics Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BitFuFu and Enlivex Therapeutics
The main advantage of trading using opposite BitFuFu and Enlivex Therapeutics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu position performs unexpectedly, Enlivex Therapeutics 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 Enlivex Therapeutics will offset losses from the drop in Enlivex Therapeutics' long position.BitFuFu vs. Hut 8 Corp | BitFuFu vs. HIVE Blockchain Technologies | BitFuFu vs. Bit Digital | BitFuFu vs. Terawulf |
Enlivex Therapeutics vs. Hut 8 Corp | Enlivex Therapeutics vs. HIVE Blockchain Technologies | Enlivex Therapeutics vs. Bit Digital | Enlivex Therapeutics vs. Terawulf |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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