Correlation Between Upwork and First Advantage
Can any of the company-specific risk be diversified away by investing in both Upwork and First Advantage 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 Upwork and First Advantage into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Upwork Inc and First Advantage Corp, you can compare the effects of market volatilities on Upwork and First Advantage 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 Upwork with a short position of First Advantage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Upwork and First Advantage.
Diversification Opportunities for Upwork and First Advantage
0.39 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Upwork and First is 0.39. Overlapping area represents the amount of risk that can be diversified away by holding Upwork Inc and First Advantage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on First Advantage Corp and Upwork 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 Upwork Inc are associated (or correlated) with First Advantage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of First Advantage Corp has no effect on the direction of Upwork i.e., Upwork and First Advantage go up and down completely randomly.
Pair Corralation between Upwork and First Advantage
Given the investment horizon of 90 days Upwork is expected to generate 1.29 times less return on investment than First Advantage. In addition to that, Upwork is 1.55 times more volatile than First Advantage Corp. It trades about 0.11 of its total potential returns per unit of risk. First Advantage Corp is currently generating about 0.23 per unit of volatility. If you would invest 1,402 in First Advantage Corp on September 26, 2025 and sell it today you would earn a total of 130.00 from holding First Advantage Corp or generate 9.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Upwork Inc vs. First Advantage Corp
Performance |
| Timeline |
| Upwork Inc |
| First Advantage Corp |
Upwork and First Advantage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Upwork and First Advantage
The main advantage of trading using opposite Upwork and First Advantage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Upwork position performs unexpectedly, First Advantage 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 First Advantage will offset losses from the drop in First Advantage's long position.| Upwork vs. BW LPG Limited | Upwork vs. Triton International Limited | Upwork vs. Power Solutions International, | Upwork vs. Star Bulk Carriers |
| First Advantage vs. Acuren | First Advantage vs. CompoSecure, | First Advantage vs. Upwork Inc | First Advantage vs. LegalZoom |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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