Correlation Between Inflection Point and BitFuFu

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

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

Diversification Opportunities for Inflection Point and BitFuFu

-0.23

Correlation Coefficient

Inflection Point  BitFuFu

Very good diversification

The 3 months correlation between Inflection and BitFuFu is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding Inflection Point Acquisition 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 Inflection Point 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 Inflection Point Acquisition 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 Inflection Point i.e., Inflection Point and BitFuFu go up and down completely randomly.

Pair Corralation between Inflection Point and BitFuFu

Assuming the 90 days horizon Inflection Point is expected to generate 1.17 times less return on investment than BitFuFu. But when comparing it to its historical volatility, Inflection Point Acquisition is 8.27 times less risky than BitFuFu. It trades about 0.11 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest  399.00  in BitFuFu Class A on May 17, 2025 and sell it today you would lose (2.00) from holding BitFuFu Class A or give up 0.5% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	98.39%
Values	Daily Returns

Inflection Point Acquisition  vs.  BitFuFu Class A

Inflection Point Acq

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Inflection Point Acquisition are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Inflection Point 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

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable technical and fundamental indicators, BitFuFu is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Pair Trading with Inflection Point and BitFuFu

The main advantage of trading using opposite Inflection Point and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inflection Point 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 Inflection Point Acquisition 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.