Correlation Between NYSE Composite and Upstart Holdings
Can any of the company-specific risk be diversified away by investing in both NYSE Composite and Upstart Holdings 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 NYSE Composite and Upstart Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NYSE Composite and Upstart Holdings, you can compare the effects of market volatilities on NYSE Composite and Upstart Holdings 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 NYSE Composite with a short position of Upstart Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of NYSE Composite and Upstart Holdings.
Diversification Opportunities for NYSE Composite and Upstart Holdings
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between NYSE and Upstart is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding NYSE Composite and Upstart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Holdings and NYSE Composite 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 NYSE Composite are associated (or correlated) with Upstart Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Holdings has no effect on the direction of NYSE Composite i.e., NYSE Composite and Upstart Holdings go up and down completely randomly.
Pair Corralation between NYSE Composite and Upstart Holdings
Assuming the 90 days trading horizon NYSE Composite is expected to generate 12.27 times less return on investment than Upstart Holdings. But when comparing it to its historical volatility, NYSE Composite is 10.23 times less risky than Upstart Holdings. It trades about 0.14 of its potential returns per unit of risk. Upstart Holdings is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 2,412 in Upstart Holdings on August 30, 2024 and sell it today you would earn a total of 5,431 from holding Upstart Holdings or generate 225.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
NYSE Composite vs. Upstart Holdings
Performance |
| Timeline |
NYSE Composite and Upstart Holdings Volatility Contrast
Predicted Return Density |
| Returns |
NYSE Composite
Pair trading matchups for NYSE Composite
Upstart Holdings
Pair trading matchups for Upstart Holdings
Pair Trading with NYSE Composite and Upstart Holdings
The main advantage of trading using opposite NYSE Composite and Upstart Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NYSE Composite position performs unexpectedly, Upstart Holdings 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 Holdings will offset losses from the drop in Upstart Holdings' long position.| NYSE Composite vs. Delek Drilling | NYSE Composite vs. Helmerich and Payne | NYSE Composite vs. Waste Management | NYSE Composite vs. US Global Investors |
| Upstart Holdings vs. SoFi Technologies | Upstart Holdings vs. Visa Class A | Upstart Holdings vs. Mastercard | Upstart Holdings vs. American Express |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |