Correlation Between Upstart Investments and Magellan Aerospace

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

By analyzing existing cross correlation between Upstart Investments and Magellan Aerospace, you can compare the effects of market volatilities on Upstart Investments and Magellan Aerospace 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 Investments with a short position of Magellan Aerospace. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upstart Investments and Magellan Aerospace.

Diversification Opportunities for Upstart Investments and Magellan Aerospace

0.0

Correlation Coefficient

Upstart Investments  Magellan Aerospace

Pay attention - limited upside

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

Pair Corralation between Upstart Investments and Magellan Aerospace

If you would invest  941.00  in Magellan Aerospace on September 12, 2024 and sell it today you would earn a total of  140.00  from holding Magellan Aerospace or generate 14.88% return on investment over 90 days.

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

Upstart Investments  vs.  Magellan Aerospace

Upstart Investments

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Upstart Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Upstart Investments is not utilizing all of its potentials. The recent stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Magellan Aerospace

Risk-Adjusted Performance

10 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Magellan Aerospace are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal essential indicators, Magellan Aerospace displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Upstart Investments and Magellan Aerospace

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

The idea behind Upstart Investments and Magellan Aerospace 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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.