Correlation Between Lifeway Foods and BitFuFu

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

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

Diversification Opportunities for Lifeway Foods and BitFuFu

-0.13

Correlation Coefficient

Lifeway Foods  BitFuFu

Good diversification

The 3 months correlation between Lifeway and BitFuFu is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods 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 Lifeway Foods i.e., Lifeway Foods and BitFuFu go up and down completely randomly.

Pair Corralation between Lifeway Foods and BitFuFu

Given the investment horizon of 90 days Lifeway Foods is expected to generate 1.34 times less return on investment than BitFuFu. But when comparing it to its historical volatility, Lifeway Foods is 1.77 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 0.05 of returns per unit of risk over similar time horizon. If you would invest  335.00  in BitFuFu Class A on May 3, 2025 and sell it today you would earn a total of  28.00  from holding BitFuFu Class A or generate 8.36% return on investment over 90 days.

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

Lifeway Foods  vs.  BitFuFu Class A

Lifeway Foods

Risk-Adjusted Performance

Insignificant

Compared to the overall equity markets, risk-adjusted returns on investments in Lifeway Foods are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. In spite of fairly unsteady basic indicators, Lifeway Foods may actually be approaching a critical reversion point that can send shares even higher in September 2025.

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 4 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain 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 Lifeway Foods and BitFuFu

The main advantage of trading using opposite Lifeway Foods and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lifeway Foods 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 Lifeway Foods 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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.