Correlation Between First BITCoin and Up Fintech
Can any of the company-specific risk be diversified away by investing in both First BITCoin and Up Fintech 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 First BITCoin and Up Fintech into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between First BITCoin Capital and Up Fintech Holding, you can compare the effects of market volatilities on First BITCoin and Up Fintech 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 First BITCoin with a short position of Up Fintech. Check out your portfolio center. Please also check ongoing floating volatility patterns of First BITCoin and Up Fintech.
Diversification Opportunities for First BITCoin and Up Fintech
-0.07 | Correlation Coefficient |
Good diversification
The 3 months correlation between First and TIGR is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding First BITCoin Capital and Up Fintech Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Up Fintech Holding and First BITCoin 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 First BITCoin Capital are associated (or correlated) with Up Fintech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Up Fintech Holding has no effect on the direction of First BITCoin i.e., First BITCoin and Up Fintech go up and down completely randomly.
Pair Corralation between First BITCoin and Up Fintech
Assuming the 90 days horizon First BITCoin Capital is expected to generate 25.12 times more return on investment than Up Fintech. However, First BITCoin is 25.12 times more volatile than Up Fintech Holding. It trades about 0.13 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.0 per unit of risk. If you would invest 0.01 in First BITCoin Capital on January 16, 2024 and sell it today you would earn a total of 0.05 from holding First BITCoin Capital or generate 500.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
First BITCoin Capital vs. Up Fintech Holding
Performance |
| Timeline |
| First BITCoin Capital |
| Up Fintech Holding |
First BITCoin and Up Fintech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with First BITCoin and Up Fintech
The main advantage of trading using opposite First BITCoin and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if First BITCoin position performs unexpectedly, Up Fintech 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 Up Fintech will offset losses from the drop in Up Fintech's long position.| First BITCoin vs. JPMorgan Chase Co | First BITCoin vs. Wells Fargo | First BITCoin vs. Citigroup | First BITCoin vs. American Express |
| Up Fintech vs. JPMorgan Chase Co | Up Fintech vs. Wells Fargo | Up Fintech vs. Citigroup | Up Fintech vs. American Express |
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 AI Investment Finder module to use AI to screen and filter profitable investment opportunities.
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