Correlation Between Broad Capital and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Broad Capital and Up Fintech 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 Broad Capital and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Broad Capital Acquisition and Up Fintech Holding, you can compare the effects of market volatilities on Broad Capital and Up Fintech 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 Broad Capital with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broad Capital and Up Fintech.
Diversification Opportunities for Broad Capital and Up Fintech
-0.54 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Broad and TIGR is -0.54. Overlapping area represents the amount of risk that can be diversified away by holding Broad Capital Acquisition and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding and Broad 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 Broad Capital Acquisition are associated (or correlated) with Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Broad Capital i.e., Broad Capital and Up Fintech go up and down completely randomly.
Pair Corralation between Broad Capital and Up Fintech
Assuming the 90 days horizon Broad Capital is expected to generate 5.66 times less return on investment than Up Fintech. But when comparing it to its historical volatility, Broad Capital Acquisition is 7.83 times less risky than Up Fintech. It trades about 0.04 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 533.00 in Up Fintech Holding on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Up Fintech Holding or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broad Capital Acquisition vs. Up Fintech Holding
Performance |
| Timeline |
| Broad Capital Acquisition |
| Up Fintech Holding |
Broad Capital and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broad Capital and Up Fintech
The main advantage of trading using opposite Broad Capital and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broad Capital position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.| Broad Capital vs. Marblegate Acquisition Corp | Broad Capital vs. Alpha One | Broad Capital vs. Manaris Corp | Broad Capital vs. SCOR PK |
| Up Fintech vs. Riot Blockchain | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Applied Blockchain | Up Fintech vs. Hut 8 Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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