Correlation Between Carlyle and Up Fintech

Can any of the company-specific risk be diversified away by investing in both Carlyle and Up Fintech 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 Carlyle and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Carlyle Group and Up Fintech Holding, you can compare the effects of market volatilities on Carlyle and Up Fintech 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 Carlyle with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Carlyle and Up Fintech.

Diversification Opportunities for Carlyle and Up Fintech

-0.18

Correlation Coefficient

Carlyle  Up Fintech

Good diversification

The 3 months correlation between Carlyle and TIGR is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Carlyle Group and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding and Carlyle 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 Carlyle Group are associated (or correlated) with Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of Carlyle i.e., Carlyle and Up Fintech go up and down completely randomly.

Pair Corralation between Carlyle and Up Fintech

Allowing for the 90-day total investment horizon Carlyle Group is expected to generate 0.54 times more return on investment than Up Fintech. However, Carlyle Group is 1.84 times less risky than Up Fintech. It trades about 0.01 of its potential returns per unit of risk. Up Fintech Holding is currently generating about -0.05 per unit of risk. If you would invest  5,239  in Carlyle Group on October 11, 2024 and sell it today you would lose (8.00) from holding Carlyle Group or give up 0.15% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Carlyle Group  vs.  Up Fintech Holding

Carlyle Group

Risk-Adjusted Performance

5 of 100

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in Carlyle Group are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly unfluctuating technical and fundamental indicators, Carlyle may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Up Fintech Holding

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Up Fintech Holding has generated negative risk-adjusted returns adding no value to investors with long positions. Even with uncertain performance in the last few months, the Stock's technical and fundamental indicators remain relatively invariable which may send shares a bit higher in February 2025. The latest agitation may also be a sign of long-running up-swing for the enterprise retail investors.

Pair Trading with Carlyle and Up Fintech

The main advantage of trading using opposite Carlyle and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Carlyle position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.

The idea behind Carlyle Group and Up Fintech Holding pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Anywhere module to track or share privately all of your investments from the convenience of any device.