Correlation Between Pinterest and Upstart Holdings
Can any of the company-specific risk be diversified away by investing in both Pinterest 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 Pinterest and Upstart Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Pinterest and Upstart Holdings, you can compare the effects of market volatilities on Pinterest 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 Pinterest with a short position of Upstart Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Pinterest and Upstart Holdings.
Diversification Opportunities for Pinterest and Upstart Holdings
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Pinterest and Upstart is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Pinterest and Upstart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Holdings and Pinterest 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 Pinterest 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 Pinterest i.e., Pinterest and Upstart Holdings go up and down completely randomly.
Pair Corralation between Pinterest and Upstart Holdings
Given the investment horizon of 90 days Pinterest is expected to under-perform the Upstart Holdings. But the stock apears to be less risky and, when comparing its historical volatility, Pinterest is 2.86 times less risky than Upstart Holdings. The stock trades about -0.06 of its potential returns per unit of risk. The Upstart Holdings is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 5,042 in Upstart Holdings on August 30, 2024 and sell it today you would earn a total of 2,801 from holding Upstart Holdings or generate 55.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Pinterest vs. Upstart Holdings
Performance |
| Timeline |
| Upstart Holdings |
Pinterest and Upstart Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Pinterest and Upstart Holdings
The main advantage of trading using opposite Pinterest and Upstart Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Pinterest 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.| Pinterest vs. Twilio Inc | Pinterest vs. Meta Platforms | Pinterest vs. Alphabet Inc Class C | Pinterest vs. Alphabet Inc Class A |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |