Correlation Between Up Fintech and Applied Digital
Can any of the company-specific risk be diversified away by investing in both Up Fintech and Applied Digital 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 Up Fintech and Applied Digital into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Up Fintech Holding and Applied Digital, you can compare the effects of market volatilities on Up Fintech and Applied Digital 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 Up Fintech with a short position of Applied Digital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Up Fintech and Applied Digital.
Diversification Opportunities for Up Fintech and Applied Digital
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between TIGR and Applied is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding and Applied Digital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Applied Digital and Up Fintech 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 Up Fintech Holding are associated (or correlated) with Applied Digital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Applied Digital has no effect on the direction of Up Fintech i.e., Up Fintech and Applied Digital go up and down completely randomly.
Pair Corralation between Up Fintech and Applied Digital
Given the investment horizon of 90 days Up Fintech Holding is expected to generate 0.86 times more return on investment than Applied Digital. However, Up Fintech Holding is 1.17 times less risky than Applied Digital. It trades about 0.08 of its potential returns per unit of risk. Applied Digital is currently generating about 0.0 per unit of risk. If you would invest 590.00 in Up Fintech Holding on December 2, 2024 and sell it today you would earn a total of 134.00 from holding Up Fintech Holding or generate 22.71% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Up Fintech Holding vs. Applied Digital
Performance |
Timeline |
Up Fintech Holding |
Applied Digital |
Up Fintech and Applied Digital Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Up Fintech and Applied Digital
The main advantage of trading using opposite Up Fintech and Applied Digital positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Up Fintech position performs unexpectedly, Applied Digital 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 Applied Digital will offset losses from the drop in Applied Digital's long position.Up Fintech vs. Bit Digital | Up Fintech vs. Marathon Digital Holdings | Up Fintech vs. Xp Inc | Up Fintech vs. Bitfarms |
Applied Digital vs. Magic Empire Global | Applied Digital vs. Zhong Yang Financial | Applied Digital vs. Netcapital | Applied Digital vs. Lazard |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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