Correlation Between Upstart Holdings and Wilmar International
Can any of the company-specific risk be diversified away by investing in both Upstart Holdings and Wilmar International 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 Wilmar International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upstart Holdings and Wilmar International Limited, you can compare the effects of market volatilities on Upstart Holdings and Wilmar International 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 Wilmar International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Holdings and Wilmar International.
Diversification Opportunities for Upstart Holdings and Wilmar International
-0.3 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Upstart and Wilmar is -0.3. Overlapping area represents the amount of risk that can be diversified away by holding Upstart Holdings and Wilmar International Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wilmar International 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 Wilmar International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wilmar International has no effect on the direction of Upstart Holdings i.e., Upstart Holdings and Wilmar International go up and down completely randomly.
Pair Corralation between Upstart Holdings and Wilmar International
Given the investment horizon of 90 days Upstart Holdings is expected to generate 1.38 times more return on investment than Wilmar International. However, Upstart Holdings is 1.38 times more volatile than Wilmar International Limited. It trades about 0.07 of its potential returns per unit of risk. Wilmar International Limited is currently generating about 0.03 per unit of risk. If you would invest 3,390 in Upstart Holdings on November 5, 2024 and sell it today you would earn a total of 2,927 from holding Upstart Holdings or generate 86.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 81.71% |
| Values | Daily Returns |
Upstart Holdings vs. Wilmar International Limited
Performance |
| Timeline |
| Upstart Holdings |
| Wilmar International |
Upstart Holdings and Wilmar International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upstart Holdings and Wilmar International
The main advantage of trading using opposite Upstart Holdings and Wilmar International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upstart Holdings position performs unexpectedly, Wilmar International 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 Wilmar International will offset losses from the drop in Wilmar International's long position.| Upstart Holdings vs. SoFi Technologies | Upstart Holdings vs. Visa Class A | Upstart Holdings vs. Mastercard | Upstart Holdings vs. American Express |
| Wilmar International vs. Fresh Del Monte | Wilmar International vs. Limoneira Co | Wilmar International vs. Brasilagro Adr | Wilmar International vs. Alico Inc |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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