Correlation Between Upstart Holdings and Dow Jones
Can any of the company-specific risk be diversified away by investing in both Upstart Holdings and Dow Jones 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 Dow Jones into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upstart Holdings and Dow Jones Industrial, you can compare the effects of market volatilities on Upstart Holdings and Dow Jones 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 Dow Jones. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Holdings and Dow Jones.
Diversification Opportunities for Upstart Holdings and Dow Jones
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Upstart and Dow is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Upstart Holdings and Dow Jones Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dow Jones Industrial 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 Dow Jones. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dow Jones Industrial has no effect on the direction of Upstart Holdings i.e., Upstart Holdings and Dow Jones go up and down completely randomly.
Pair Corralation between Upstart Holdings and Dow Jones
Given the investment horizon of 90 days Upstart Holdings is expected to generate 11.15 times more return on investment than Dow Jones. However, Upstart Holdings is 11.15 times more volatile than Dow Jones Industrial. It trades about 0.19 of its potential returns per unit of risk. Dow Jones Industrial is currently generating about 0.15 per unit of risk. If you would invest 4,975 in Upstart Holdings on August 24, 2024 and sell it today you would earn a total of 2,065 from holding Upstart Holdings or generate 41.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Upstart Holdings vs. Dow Jones Industrial
Performance |
| Timeline |
Upstart Holdings and Dow Jones Volatility Contrast
Predicted Return Density |
| Returns |
Upstart Holdings
Pair trading matchups for Upstart Holdings
Dow Jones Industrial
Pair trading matchups for Dow Jones
Pair Trading with Upstart Holdings and Dow Jones
The main advantage of trading using opposite Upstart Holdings and Dow Jones positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upstart Holdings position performs unexpectedly, Dow Jones 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 Dow Jones will offset losses from the drop in Dow Jones' long position.| Upstart Holdings vs. SoFi Technologies | Upstart Holdings vs. Visa Class A | Upstart Holdings vs. Mastercard | Upstart Holdings vs. American Express |
| Dow Jones vs. Sphere Entertainment Co | Dow Jones vs. Perseus Mining Limited | Dow Jones vs. Titan Machinery | Dow Jones vs. Simon Property Group |
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 Share Portfolio module to track or share privately all of your investments from the convenience of any device.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |