Correlation Between Ready Capital and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Ready Capital 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 Ready Capital and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ready Capital Corp and Up Fintech Holding, you can compare the effects of market volatilities on Ready Capital 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 Ready Capital with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ready Capital and Up Fintech.
Diversification Opportunities for Ready Capital and Up Fintech
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Ready and TIGR is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Ready Capital Corp 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 Ready Capital 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 Ready Capital Corp 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 Ready Capital i.e., Ready Capital and Up Fintech go up and down completely randomly.
Pair Corralation between Ready Capital and Up Fintech
Allowing for the 90-day total investment horizon Ready Capital Corp is expected to under-perform the Up Fintech. But the stock apears to be less risky and, when comparing its historical volatility, Ready Capital Corp is 2.61 times less risky than Up Fintech. The stock trades about -0.02 of its potential returns per unit of risk. The Up Fintech Holding is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 533.00 in Up Fintech Holding on September 3, 2024 and sell it today you would earn a total of 46.00 from holding Up Fintech Holding or generate 8.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ready Capital Corp vs. Up Fintech Holding
Performance |
| Timeline |
| Ready Capital Corp |
| Up Fintech Holding |
Ready Capital and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ready Capital and Up Fintech
The main advantage of trading using opposite Ready Capital and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ready Capital 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.| Ready Capital vs. ARMOUR Residential REIT | Ready Capital vs. Ellington Financial | Ready Capital vs. Ares Commercial Real | Ready Capital vs. Cherry Hill Mortgage |
| Up Fintech vs. Riot Blockchain | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Applied Blockchain | Up Fintech vs. Hut 8 Corp |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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