Correlation Between Interactive Brokers and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Interactive Brokers 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 Interactive Brokers and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Interactive Brokers Group and Up Fintech Holding, you can compare the effects of market volatilities on Interactive Brokers 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 Interactive Brokers with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Interactive Brokers and Up Fintech.
Diversification Opportunities for Interactive Brokers and Up Fintech
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Interactive and TIGR is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Interactive Brokers Group 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 Interactive Brokers 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 Interactive Brokers Group 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 Interactive Brokers i.e., Interactive Brokers and Up Fintech go up and down completely randomly.
Pair Corralation between Interactive Brokers and Up Fintech
Given the investment horizon of 90 days Interactive Brokers Group is expected to generate 0.35 times more return on investment than Up Fintech. However, Interactive Brokers Group is 2.89 times less risky than Up Fintech. It trades about 0.11 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.03 per unit of risk. If you would invest 7,691 in Interactive Brokers Group on August 25, 2024 and sell it today you would earn a total of 11,471 from holding Interactive Brokers Group or generate 149.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Interactive Brokers Group vs. Up Fintech Holding
Performance |
| Timeline |
| Interactive Brokers |
| Up Fintech Holding |
Interactive Brokers and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Interactive Brokers and Up Fintech
The main advantage of trading using opposite Interactive Brokers and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Interactive Brokers 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.| Interactive Brokers vs. Sellas Life Sciences | Interactive Brokers vs. Ardelyx | Interactive Brokers vs. Sweetgreen | Interactive Brokers vs. Yum Brands |
| Up Fintech vs. Bit Digital | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
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 Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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