Correlation Between Up Fintech and MarketAxess Holdings
Can any of the company-specific risk be diversified away by investing in both Up Fintech and MarketAxess 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 Up Fintech and MarketAxess Holdings 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 MarketAxess Holdings, you can compare the effects of market volatilities on Up Fintech and MarketAxess 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 Up Fintech with a short position of MarketAxess Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of Up Fintech and MarketAxess Holdings.
Diversification Opportunities for Up Fintech and MarketAxess Holdings
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TIGR and MarketAxess is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding and MarketAxess Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MarketAxess 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 MarketAxess Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MarketAxess Holdings has no effect on the direction of Up Fintech i.e., Up Fintech and MarketAxess Holdings go up and down completely randomly.
Pair Corralation between Up Fintech and MarketAxess Holdings
Given the investment horizon of 90 days Up Fintech Holding is expected to generate 4.71 times more return on investment than MarketAxess Holdings. However, Up Fintech is 4.71 times more volatile than MarketAxess Holdings. It trades about -0.05 of its potential returns per unit of risk. MarketAxess Holdings is currently generating about -0.4 per unit of risk. If you would invest 614.00 in Up Fintech Holding on August 25, 2024 and sell it today you would lose (55.00) from holding Up Fintech Holding or give up 8.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Up Fintech Holding vs. MarketAxess Holdings
Performance |
| Timeline |
| Up Fintech Holding |
| MarketAxess Holdings |
Up Fintech and MarketAxess Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Up Fintech and MarketAxess Holdings
The main advantage of trading using opposite Up Fintech and MarketAxess Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Up Fintech position performs unexpectedly, MarketAxess 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 MarketAxess Holdings will offset losses from the drop in MarketAxess Holdings' long position.| Up Fintech vs. Bit Digital | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
| MarketAxess Holdings vs. Interactive Brokers Group | MarketAxess Holdings vs. Evercore Partners | MarketAxess Holdings vs. PJT Partners | MarketAxess Holdings vs. LPL Financial Holdings |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity |