Correlation Between Exponent and Upwork
Can any of the company-specific risk be diversified away by investing in both Exponent 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 Exponent and Upwork into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Exponent and Upwork Inc, you can compare the effects of market volatilities on Exponent 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 Exponent with a short position of Upwork. Check out your portfolio center. Please also check ongoing floating volatility patterns of Exponent and Upwork.
Diversification Opportunities for Exponent and Upwork
Excellent diversification
The 3 months correlation between Exponent and Upwork is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding Exponent and Upwork Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upwork Inc and Exponent 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 Exponent 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 Exponent i.e., Exponent and Upwork go up and down completely randomly.
Pair Corralation between Exponent and Upwork
Given the investment horizon of 90 days Exponent is expected to under-perform the Upwork. But the stock apears to be less risky and, when comparing its historical volatility, Exponent is 1.27 times less risky than Upwork. The stock trades about -0.12 of its potential returns per unit of risk. The Upwork Inc is currently generating about 0.31 of returns per unit of risk over similar time horizon. If you would invest 1,265 in Upwork Inc on August 25, 2024 and sell it today you would earn a total of 337.00 from holding Upwork Inc or generate 26.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Exponent vs. Upwork Inc
Performance |
| Timeline |
| Exponent |
| Upwork Inc |
Exponent and Upwork Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Exponent and Upwork
The main advantage of trading using opposite Exponent and Upwork positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Exponent 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.| Exponent vs. CRA International | Exponent vs. Huron Consulting Group | Exponent vs. Forrester Research | Exponent vs. Resources Connection |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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