Correlation Between Up Fintech and BitFuFu

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

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

Diversification Opportunities for Up Fintech and BitFuFu

0.25

Correlation Coefficient

Up Fintech  BitFuFu

Modest diversification

The 3 months correlation between TIGR and BitFuFu is 0.25. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding 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 Up Fintech 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 Up Fintech Holding 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 Up Fintech i.e., Up Fintech and BitFuFu go up and down completely randomly.

Pair Corralation between Up Fintech and BitFuFu

Given the investment horizon of 90 days Up Fintech Holding is expected to generate 0.63 times more return on investment than BitFuFu. However, Up Fintech Holding is 1.59 times less risky than BitFuFu. It trades about 0.05 of its potential returns per unit of risk. BitFuFu Class A is currently generating about 0.01 per unit of risk. If you would invest  487.00  in Up Fintech Holding on August 2, 2025 and sell it today you would earn a total of  562.00  from holding Up Fintech Holding or generate 115.4% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

Up Fintech Holding  vs.  BitFuFu Class A

Up Fintech Holding

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in Up Fintech Holding are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. Even with relatively weak technical and fundamental indicators, Up Fintech reported solid returns over the last few months and may actually be approaching a breakup point.

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 Up Fintech and BitFuFu

The main advantage of trading using opposite Up Fintech and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Up Fintech 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 Up Fintech Holding 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.