Correlation Between XTI Aerospace, and BitFuFu

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

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

Diversification Opportunities for XTI Aerospace, and BitFuFu

-0.26

Correlation Coefficient

XTI Aerospace,  BitFuFu

Very good diversification

The 3 months correlation between XTI and BitFuFu is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding XTI Aerospace, 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 XTI Aerospace, 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 XTI Aerospace, 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 XTI Aerospace, i.e., XTI Aerospace, and BitFuFu go up and down completely randomly.

Pair Corralation between XTI Aerospace, and BitFuFu

Given the investment horizon of 90 days XTI Aerospace, is expected to under-perform the BitFuFu. In addition to that, XTI Aerospace, is 1.62 times more volatile than BitFuFu Class A. It trades about -0.75 of its total potential returns per unit of risk. BitFuFu Class A is currently generating about 0.19 per unit of volatility. If you would invest  387.00  in BitFuFu Class A on August 7, 2024 and sell it today you would earn a total of  69.00  from holding BitFuFu Class A or generate 17.83% return on investment over 90 days.

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

XTI Aerospace,  vs.  BitFuFu Class A

XTI Aerospace,

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days XTI Aerospace, has generated negative risk-adjusted returns adding no value to investors with long positions. Despite inconsistent performance in the last few months, the Stock's forward indicators remain somewhat strong which may send shares a bit higher in December 2024. The current disturbance may also be a sign of long term up-swing for the company investors.

BitFuFu Class A

Risk-Adjusted Performance

6 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in BitFuFu Class A are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unsteady technical and fundamental indicators, BitFuFu unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with XTI Aerospace, and BitFuFu

The main advantage of trading using opposite XTI Aerospace, and BitFuFu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XTI Aerospace, 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 XTI Aerospace, 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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..