Correlation Between Upstart Investments and NextSource Materials

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

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

Diversification Opportunities for Upstart Investments and NextSource Materials

0.0

Correlation Coefficient

Upstart Investments  NextSource Materials

Pay attention - limited upside

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

Pair Corralation between Upstart Investments and NextSource Materials

If you would invest  51.00  in NextSource Materials on September 26, 2024 and sell it today you would earn a total of  29.00  from holding NextSource Materials or generate 56.86% return on investment over 90 days.

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

Upstart Investments  vs.  NextSource Materials

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.

NextSource Materials

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in NextSource Materials are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of very abnormal basic indicators, NextSource Materials displayed solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Upstart Investments and NextSource Materials

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

The idea behind Upstart Investments and NextSource Materials 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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.