Correlation Between Upstart Holdings and Silvergate Capital

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

By analyzing existing cross correlation between Upstart Holdings and Silvergate Capital, you can compare the effects of market volatilities on Upstart Holdings and Silvergate Capital 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 Silvergate Capital. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Holdings and Silvergate Capital.

Diversification Opportunities for Upstart Holdings and Silvergate Capital

0.0

Correlation Coefficient

Upstart Holdings  Silvergate Capital

Pay attention - limited upside

The 3 months correlation between Upstart and Silvergate is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Upstart Holdings and Silvergate Capital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silvergate Capital 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 Silvergate Capital. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silvergate Capital has no effect on the direction of Upstart Holdings i.e., Upstart Holdings and Silvergate Capital go up and down completely randomly.

Pair Corralation between Upstart Holdings and Silvergate Capital

If you would invest (100.00) in Silvergate Capital on December 29, 2024 and sell it today you would earn a total of  100.00  from holding Silvergate Capital or generate -100.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	0.0%
Values	Daily Returns

Upstart Holdings  vs.  Silvergate Capital

Upstart Holdings

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upstart Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's basic indicators remain comparatively stable which may send shares a bit higher in April 2025. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

Silvergate Capital

Risk-Adjusted Performance

Very Weak

Over the last 90 days Silvergate Capital has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fairly strong forward indicators, Silvergate Capital is not utilizing all of its potentials. The latest stock price confusion, may contribute to short-horizon losses for the traders.

Pair Trading with Upstart Holdings and Silvergate Capital

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

The idea behind Upstart Holdings and Silvergate Capital 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.