Correlation Between Regional Management and Up Fintech
Can any of the company-specific risk be diversified away by investing in both Regional Management 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 Regional Management and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Regional Management Corp and Up Fintech Holding, you can compare the effects of market volatilities on Regional Management 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 Regional Management with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Regional Management and Up Fintech.
Diversification Opportunities for Regional Management and Up Fintech
-0.42 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Regional and TIGR is -0.42. Overlapping area represents the amount of risk that can be diversified away by holding Regional Management 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 Regional Management 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 Regional Management 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 Regional Management i.e., Regional Management and Up Fintech go up and down completely randomly.
Pair Corralation between Regional Management and Up Fintech
Allowing for the 90-day total investment horizon Regional Management is expected to generate 3.29 times less return on investment than Up Fintech. But when comparing it to its historical volatility, Regional Management Corp is 1.82 times less risky than Up Fintech. It trades about 0.02 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 368.00 in Up Fintech Holding on August 28, 2024 and sell it today you would earn a total of 195.00 from holding Up Fintech Holding or generate 52.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Regional Management Corp vs. Up Fintech Holding
Performance |
| Timeline |
| Regional Management Corp |
| Up Fintech Holding |
Regional Management and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Regional Management and Up Fintech
The main advantage of trading using opposite Regional Management and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Regional Management 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.| Regional Management vs. SLM Corp Pb | Regional Management vs. FirstCash | Regional Management vs. Navient Corp | Regional Management vs. Orix Corp Ads |
| Up Fintech vs. Visa Class A | Up Fintech vs. Diamond Hill Investment | Up Fintech vs. Distoken Acquisition | Up Fintech vs. AllianceBernstein Holding LP |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |