Correlation Between Upexi and Lizhi

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

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

Diversification Opportunities for Upexi and Lizhi

0.0

Correlation Coefficient

Upexi  Lizhi

Pay attention - limited upside

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

Pair Corralation between Upexi and Lizhi

If you would invest (100.00) in Lizhi Inc on December 28, 2024 and sell it today you would earn a total of  100.00  from holding Lizhi Inc 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

Upexi Inc  vs.  Lizhi Inc

Upexi Inc

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upexi Inc has generated negative risk-adjusted returns adding no value to investors with long positions. Despite fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in April 2025. The recent confusion may also be a sign of long-lasting up-swing for the firm traders.

Lizhi Inc

Risk-Adjusted Performance

Very Weak

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

Pair Trading with Upexi and Lizhi

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

The idea behind Upexi Inc and Lizhi Inc 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.