Correlation Between E L and Upstart Investments
Can any of the company-specific risk be diversified away by investing in both E L and Upstart Investments 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 E L and Upstart Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between E L Financial Corp and Upstart Investments, you can compare the effects of market volatilities on E L and Upstart Investments 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 E L with a short position of Upstart Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of E L and Upstart Investments.
Diversification Opportunities for E L and Upstart Investments
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between ELF and Upstart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding E L Financial Corp and Upstart Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Investments and E L 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 E L Financial Corp are associated (or correlated) with Upstart Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Investments has no effect on the direction of E L i.e., E L and Upstart Investments go up and down completely randomly.
Pair Corralation between E L and Upstart Investments
Assuming the 90 days trading horizon E L Financial Corp is expected to generate 0.22 times more return on investment than Upstart Investments. However, E L Financial Corp is 4.57 times less risky than Upstart Investments. It trades about 0.13 of its potential returns per unit of risk. Upstart Investments is currently generating about 0.0 per unit of risk. If you would invest 94,334 in E L Financial Corp on September 14, 2024 and sell it today you would earn a total of 45,665 from holding E L Financial Corp or generate 48.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
E L Financial Corp vs. Upstart Investments
Performance |
| Timeline |
| E L Financial |
| Upstart Investments |
E L and Upstart Investments Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with E L and Upstart Investments
The main advantage of trading using opposite E L and Upstart Investments positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if E L position performs unexpectedly, Upstart Investments 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 Investments will offset losses from the drop in Upstart Investments' long position.| E L vs. Algoma Central | E L vs. Winpak | E L vs. Fairfax Financial Holdings | E L vs. Economic Investment Trust |
| Upstart Investments vs. Berkshire Hathaway CDR | Upstart Investments vs. E L Financial Corp | Upstart Investments vs. E L Financial 3 | Upstart Investments vs. Molson Coors Canada |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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