Correlation Between Mako Mining and Upbound

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

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

Diversification Opportunities for Mako Mining and Upbound

-0.26

Correlation Coefficient

Mako Mining  Upbound

Very good diversification

The 3 months correlation between Mako and Upbound is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Mako Mining Corp and Upbound Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upbound Group and Mako Mining 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 Mako Mining Corp are associated (or correlated) with Upbound. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upbound Group has no effect on the direction of Mako Mining i.e., Mako Mining and Upbound go up and down completely randomly.

Pair Corralation between Mako Mining and Upbound

Assuming the 90 days horizon Mako Mining is expected to generate 18.64 times less return on investment than Upbound. In addition to that, Mako Mining is 1.22 times more volatile than Upbound Group. It trades about 0.0 of its total potential returns per unit of risk. Upbound Group is currently generating about 0.09 per unit of volatility. If you would invest  2,676  in Upbound Group on October 24, 2024 and sell it today you would earn a total of  323.00  from holding Upbound Group or generate 12.07% return on investment over 90 days.

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

Mako Mining Corp  vs.  Upbound Group

Mako Mining Corp

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Mako Mining Corp has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Mako Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Upbound Group

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Upbound Group are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather weak fundamental drivers, Upbound exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Mako Mining and Upbound

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

The idea behind Mako Mining Corp and Upbound Group 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.

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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.