Correlation Between BitFuFu and OFS Credit
Can any of the company-specific risk be diversified away by investing in both BitFuFu and OFS Credit 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 BitFuFu and OFS Credit into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between BitFuFu Class A and OFS Credit, you can compare the effects of market volatilities on BitFuFu and OFS Credit 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 BitFuFu with a short position of OFS Credit. Check out your portfolio center. Please also check ongoing floating volatility patterns of BitFuFu and OFS Credit.
Diversification Opportunities for BitFuFu and OFS Credit
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BitFuFu and OFS is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding BitFuFu Class A and OFS Credit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OFS Credit and BitFuFu 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 BitFuFu Class A are associated (or correlated) with OFS Credit. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OFS Credit has no effect on the direction of BitFuFu i.e., BitFuFu and OFS Credit go up and down completely randomly.
Pair Corralation between BitFuFu and OFS Credit
Given the investment horizon of 90 days BitFuFu Class A is expected to under-perform the OFS Credit. In addition to that, BitFuFu is 2.59 times more volatile than OFS Credit. It trades about -0.09 of its total potential returns per unit of risk. OFS Credit is currently generating about -0.02 per unit of volatility. If you would invest 482.00 in OFS Credit on August 18, 2025 and sell it today you would lose (5.00) from holding OFS Credit or give up 1.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
BitFuFu Class A vs. OFS Credit
Performance |
| Timeline |
| BitFuFu Class A |
| OFS Credit |
BitFuFu and OFS Credit Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with BitFuFu and OFS Credit
The main advantage of trading using opposite BitFuFu and OFS Credit positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BitFuFu position performs unexpectedly, OFS Credit 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 OFS Credit will offset losses from the drop in OFS Credit's long position.| BitFuFu vs. Northpointe Bancshares, | BitFuFu vs. Crescent Capital BDC | BitFuFu vs. Alerus Financial Corp | BitFuFu vs. Solowin Holdings |
| OFS Credit vs. OFS Capital Corp | OFS Credit vs. BCP Investment Corp | OFS Credit vs. Silvercrest Asset Management | OFS Credit vs. Pearl Diver Credit |
Check out your portfolio center.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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
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