Correlation Between Upstart Holdings and APx Acquisition
Can any of the company-specific risk be diversified away by investing in both Upstart Holdings and APx Acquisition 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 Upstart Holdings and APx Acquisition into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upstart Holdings and APx Acquisition I, you can compare the effects of market volatilities on Upstart Holdings and APx Acquisition 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 Upstart Holdings with a short position of APx Acquisition. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Holdings and APx Acquisition.
Diversification Opportunities for Upstart Holdings and APx Acquisition
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Upstart and APx is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Upstart Holdings and APx Acquisition I in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on APx Acquisition I and Upstart Holdings 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 Upstart Holdings are associated (or correlated) with APx Acquisition. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of APx Acquisition I has no effect on the direction of Upstart Holdings i.e., Upstart Holdings and APx Acquisition go up and down completely randomly.
Pair Corralation between Upstart Holdings and APx Acquisition
Given the investment horizon of 90 days Upstart Holdings is expected to generate 4.01 times more return on investment than APx Acquisition. However, Upstart Holdings is 4.01 times more volatile than APx Acquisition I. It trades about 0.15 of its potential returns per unit of risk. APx Acquisition I is currently generating about 0.01 per unit of risk. If you would invest 6,943 in Upstart Holdings on September 13, 2024 and sell it today you would earn a total of 897.00 from holding Upstart Holdings or generate 12.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upstart Holdings vs. APx Acquisition I
Performance |
| Timeline |
| Upstart Holdings |
| APx Acquisition I |
Upstart Holdings and APx Acquisition Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upstart Holdings and APx Acquisition
The main advantage of trading using opposite Upstart Holdings and APx Acquisition positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upstart Holdings position performs unexpectedly, APx Acquisition 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 APx Acquisition will offset losses from the drop in APx Acquisition's long position.| 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |