Correlation Between Upstart HoldingsInc and ImmunoCellular Therapeutics

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

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

Diversification Opportunities for Upstart HoldingsInc and ImmunoCellular Therapeutics

0.59

Correlation Coefficient

Upstart HoldingsInc  ImmunoCellular Therapeutics

Very weak diversification

The 3 months correlation between Upstart and ImmunoCellular is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Upstart HoldingsInc and ImmunoCellular Therapeutics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ImmunoCellular Therapeutics and Upstart HoldingsInc 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 HoldingsInc are associated (or correlated) with ImmunoCellular Therapeutics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ImmunoCellular Therapeutics has no effect on the direction of Upstart HoldingsInc i.e., Upstart HoldingsInc and ImmunoCellular Therapeutics go up and down completely randomly.

Pair Corralation between Upstart HoldingsInc and ImmunoCellular Therapeutics

Given the investment horizon of 90 days Upstart HoldingsInc is expected to generate 26.02 times less return on investment than ImmunoCellular Therapeutics. But when comparing it to its historical volatility, Upstart HoldingsInc is 1.43 times less risky than ImmunoCellular Therapeutics. It trades about 0.0 of its potential returns per unit of risk. ImmunoCellular Therapeutics is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest  30.00  in ImmunoCellular Therapeutics on January 26, 2024 and sell it today you would earn a total of  17.00  from holding ImmunoCellular Therapeutics or generate 56.67% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	38.87%
Values	Daily Returns

Upstart HoldingsInc  vs.  ImmunoCellular Therapeutics

Upstart HoldingsInc

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Upstart HoldingsInc 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 May 2024. The newest uproar may also be a sign of mid-term up-swing for the firm private investors.

ImmunoCellular Therapeutics

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days ImmunoCellular Therapeutics has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of rather sound basic indicators, ImmunoCellular Therapeutics is not utilizing all of its potentials. The recent stock price tumult, may contribute to shorter-term losses for the shareholders.

Pair Trading with Upstart HoldingsInc and ImmunoCellular Therapeutics

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

The idea behind Upstart HoldingsInc and ImmunoCellular Therapeutics 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.