Correlation Between Distoken Acquisition and Up Fintech

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

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

Diversification Opportunities for Distoken Acquisition and Up Fintech

-0.1

Correlation Coefficient

Distoken Acquisition  Up Fintech

Good diversification

The 3 months correlation between Distoken and TIGR is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition 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 Distoken Acquisition i.e., Distoken Acquisition and Up Fintech go up and down completely randomly.

Pair Corralation between Distoken Acquisition and Up Fintech

Given the investment horizon of 90 days Distoken Acquisition is expected to generate 898.44 times less return on investment than Up Fintech. But when comparing it to its historical volatility, Distoken Acquisition is 13.74 times less risky than Up Fintech. It trades about 0.0 of its potential returns per unit of risk. Up Fintech Holding is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest  563.00  in Up Fintech Holding on September 25, 2024 and sell it today you would earn a total of  146.00  from holding Up Fintech Holding or generate 25.93% return on investment over 90 days.

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

Distoken Acquisition  vs.  Up Fintech Holding

Distoken Acquisition

Risk-Adjusted Performance

9 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Distoken Acquisition are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively stable basic indicators, Distoken Acquisition is not utilizing all of its potentials. The recent stock price uproar, may contribute to short-horizon losses for the private investors.

Up Fintech Holding

Risk-Adjusted Performance

10 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Up Fintech Holding are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Even with relatively uncertain technical and fundamental indicators, Up Fintech reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Distoken Acquisition and Up Fintech

The main advantage of trading using opposite Distoken Acquisition and Up Fintech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Distoken Acquisition 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.

The idea behind Distoken Acquisition and Up Fintech Holding 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.