Correlation Between Up Fintech and Velocity Financial
Can any of the company-specific risk be diversified away by investing in both Up Fintech and Velocity Financial 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 Velocity Financial 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 Velocity Financial Llc, you can compare the effects of market volatilities on Up Fintech and Velocity Financial 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 Velocity Financial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Up Fintech and Velocity Financial.
Diversification Opportunities for Up Fintech and Velocity Financial
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TIGR and Velocity is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Up Fintech Holding and Velocity Financial Llc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Velocity Financial Llc 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 Velocity Financial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Velocity Financial Llc has no effect on the direction of Up Fintech i.e., Up Fintech and Velocity Financial go up and down completely randomly.
Pair Corralation between Up Fintech and Velocity Financial
Given the investment horizon of 90 days Up Fintech Holding is expected to generate 4.05 times more return on investment than Velocity Financial. However, Up Fintech is 4.05 times more volatile than Velocity Financial Llc. It trades about 0.0 of its potential returns per unit of risk. Velocity Financial Llc is currently generating about -0.04 per unit of risk. If you would invest 1,085 in Up Fintech Holding on August 15, 2025 and sell it today you would lose (47.00) from holding Up Fintech Holding or give up 4.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Up Fintech Holding vs. Velocity Financial Llc
Performance |
| Timeline |
| Up Fintech Holding |
| Velocity Financial Llc |
Up Fintech and Velocity Financial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Up Fintech and Velocity Financial
The main advantage of trading using opposite Up Fintech and Velocity Financial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Up Fintech position performs unexpectedly, Velocity Financial 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 Velocity Financial will offset losses from the drop in Velocity Financial's long position.| Up Fintech vs. American Bitcoin Corp | Up Fintech vs. Oppenheimer Holdings | Up Fintech vs. Employers Holdings | Up Fintech vs. Atlanticus Holdings |
| Velocity Financial vs. Mercantile Bank | Velocity Financial vs. Oppenheimer Holdings | Velocity Financial vs. Northeast Bancorp | Velocity Financial vs. Nuveen Churchill Direct |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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