Correlation Between Aurora Mobile and BitFuFu

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

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

Diversification Opportunities for Aurora Mobile and BitFuFu

-0.1

Correlation Coefficient

Aurora Mobile  BitFuFu

Good diversification

The 3 months correlation between Aurora and BitFuFu is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Aurora Mobile 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 Aurora Mobile 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 Aurora Mobile 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 Aurora Mobile i.e., Aurora Mobile and BitFuFu go up and down completely randomly.

Pair Corralation between Aurora Mobile and BitFuFu

Allowing for the 90-day total investment horizon Aurora Mobile is expected to generate 1.06 times more return on investment than BitFuFu. However, Aurora Mobile is 1.06 times more volatile than BitFuFu Class A. It trades about 0.09 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.04 per unit of risk. If you would invest  864.00  in Aurora Mobile on April 30, 2025 and sell it today you would earn a total of  175.00  from holding Aurora Mobile or generate 20.25% return on investment over 90 days.

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

Aurora Mobile  vs.  BitFuFu Class A

Aurora Mobile

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Aurora Mobile are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak technical and fundamental indicators, Aurora Mobile reported solid returns over the last few months and may actually be approaching a breakup point.

BitFuFu Class A

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively conflicting technical and fundamental indicators, BitFuFu may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with Aurora Mobile and BitFuFu

The main advantage of trading using opposite Aurora Mobile and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aurora Mobile 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 Aurora Mobile 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.