Correlation Between CoreCivic and Upwork
Can any of the company-specific risk be diversified away by investing in both CoreCivic and Upwork 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 CoreCivic and Upwork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CoreCivic and Upwork Inc, you can compare the effects of market volatilities on CoreCivic and Upwork 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 CoreCivic with a short position of Upwork. Check out your portfolio center. Please also check ongoing floating volatility patterns of CoreCivic and Upwork.
Diversification Opportunities for CoreCivic and Upwork
Very poor diversification
The 3 months correlation between CoreCivic and Upwork is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CoreCivic and Upwork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upwork Inc and CoreCivic 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 CoreCivic are associated (or correlated) with Upwork. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upwork Inc has no effect on the direction of CoreCivic i.e., CoreCivic and Upwork go up and down completely randomly.
Pair Corralation between CoreCivic and Upwork
Considering the 90-day investment horizon CoreCivic is expected to generate 2.39 times more return on investment than Upwork. However, CoreCivic is 2.39 times more volatile than Upwork Inc. It trades about 0.29 of its potential returns per unit of risk. Upwork Inc is currently generating about 0.31 per unit of risk. If you would invest 1,367 in CoreCivic on August 25, 2024 and sell it today you would earn a total of 832.00 from holding CoreCivic or generate 60.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CoreCivic vs. Upwork Inc
Performance |
| Timeline |
| CoreCivic |
| Upwork Inc |
CoreCivic and Upwork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CoreCivic and Upwork
The main advantage of trading using opposite CoreCivic and Upwork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CoreCivic position performs unexpectedly, Upwork 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 Upwork will offset losses from the drop in Upwork's long position.| CoreCivic vs. ADT Inc | CoreCivic vs. NL Industries | CoreCivic vs. Mistras Group | CoreCivic vs. Evolv Technologies Holdings |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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