Correlation Between Up Fintech and Goldman Sachs

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

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

Diversification Opportunities for Up Fintech and Goldman Sachs

0.08

Correlation Coefficient

Up Fintech  Goldman Sachs

Significant diversification

The 3 months correlation between TIGR and Goldman is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding and Goldman Sachs Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goldman Sachs Group and Up Fintech 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 Up Fintech Holding are associated (or correlated) with Goldman Sachs. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goldman Sachs Group has no effect on the direction of Up Fintech i.e., Up Fintech and Goldman Sachs go up and down completely randomly.

Pair Corralation between Up Fintech and Goldman Sachs

Given the investment horizon of 90 days Up Fintech Holding is expected to generate 4.71 times more return on investment than Goldman Sachs. However, Up Fintech is 4.71 times more volatile than Goldman Sachs Group. It trades about 0.16 of its potential returns per unit of risk. Goldman Sachs Group is currently generating about 0.18 per unit of risk. If you would invest  345.00  in Up Fintech Holding on September 12, 2024 and sell it today you would earn a total of  340.00  from holding Up Fintech Holding or generate 98.55% return on investment over 90 days.

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

Up Fintech Holding  vs.  Goldman Sachs Group

Up Fintech Holding

Risk-Adjusted Performance

12 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Up Fintech Holding are ranked lower than 12 (%) 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.

Goldman Sachs Group

Risk-Adjusted Performance

14 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Goldman Sachs Group are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, Goldman Sachs unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Up Fintech and Goldman Sachs

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

The idea behind Up Fintech Holding and Goldman Sachs Group 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.