Correlation Between Associated Capital and Upstart Holdings
Can any of the company-specific risk be diversified away by investing in both Associated Capital and Upstart Holdings 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 Associated Capital and Upstart Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Associated Capital Group and Upstart Holdings, you can compare the effects of market volatilities on Associated Capital and Upstart Holdings 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 Associated Capital with a short position of Upstart Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Associated Capital and Upstart Holdings.
Diversification Opportunities for Associated Capital and Upstart Holdings
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Associated and Upstart is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Associated Capital Group and Upstart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Holdings and Associated Capital 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 Associated Capital Group are associated (or correlated) with Upstart Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Holdings has no effect on the direction of Associated Capital i.e., Associated Capital and Upstart Holdings go up and down completely randomly.
Pair Corralation between Associated Capital and Upstart Holdings
Allowing for the 90-day total investment horizon Associated Capital is expected to generate 51.52 times less return on investment than Upstart Holdings. But when comparing it to its historical volatility, Associated Capital Group is 7.85 times less risky than Upstart Holdings. It trades about 0.03 of its potential returns per unit of risk. Upstart Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 5,042 in Upstart Holdings on August 30, 2024 and sell it today you would earn a total of 2,801 from holding Upstart Holdings or generate 55.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Associated Capital Group vs. Upstart Holdings
Performance |
| Timeline |
| Associated Capital |
| Upstart Holdings |
Associated Capital and Upstart Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Associated Capital and Upstart Holdings
The main advantage of trading using opposite Associated Capital and Upstart Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Associated Capital position performs unexpectedly, Upstart Holdings 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 Upstart Holdings will offset losses from the drop in Upstart Holdings' long position.| Associated Capital vs. Abrdn Emerging Markets | Associated Capital vs. DWS Municipal Income | Associated Capital vs. Blackrock Muni Intermediate | Associated Capital vs. Blackrock Muniyield |
| Upstart Holdings vs. SoFi Technologies | Upstart Holdings vs. Visa Class A | Upstart Holdings vs. Mastercard | Upstart Holdings vs. American Express |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |