Correlation Between Up Fintech and Marathon Digital
Can any of the company-specific risk be diversified away by investing in both Up Fintech and Marathon Digital 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 Up Fintech and Marathon Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Up Fintech Holding and Marathon Digital Holdings, you can compare the effects of market volatilities on Up Fintech and Marathon Digital 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 Up Fintech with a short position of Marathon Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Up Fintech and Marathon Digital.
Diversification Opportunities for Up Fintech and Marathon Digital
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between TIGR and Marathon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding and Marathon Digital Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marathon Digital Holdings and Up Fintech 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 Up Fintech Holding are associated (or correlated) with Marathon Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marathon Digital Holdings has no effect on the direction of Up Fintech i.e., Up Fintech and Marathon Digital go up and down completely randomly.
Pair Corralation between Up Fintech and Marathon Digital
Given the investment horizon of 90 days Up Fintech Holding is expected to under-perform the Marathon Digital. But the stock apears to be less risky and, when comparing its historical volatility, Up Fintech Holding is 2.06 times less risky than Marathon Digital. The stock trades about -0.16 of its potential returns per unit of risk. The Marathon Digital Holdings is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,894 in Marathon Digital Holdings on August 29, 2024 and sell it today you would earn a total of 603.00 from holding Marathon Digital Holdings or generate 31.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Up Fintech Holding vs. Marathon Digital Holdings
Performance |
| Timeline |
| Up Fintech Holding |
| Marathon Digital Holdings |
Up Fintech and Marathon Digital Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Up Fintech and Marathon Digital
The main advantage of trading using opposite Up Fintech and Marathon Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Up Fintech position performs unexpectedly, Marathon Digital 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 Marathon Digital will offset losses from the drop in Marathon Digital's long position.| Up Fintech vs. Visa Class A | Up Fintech vs. Diamond Hill Investment | Up Fintech vs. Distoken Acquisition | Up Fintech vs. AllianceBernstein Holding LP |
| Marathon Digital vs. Hut 8 Corp | Marathon Digital vs. CleanSpark | Marathon Digital vs. Bit Digital | Marathon Digital 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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