Correlation Between I Tech and Upsales Technology

Can any of the company-specific risk be diversified away by investing in both I Tech and Upsales Technology 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 I Tech and Upsales Technology into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between I Tech and Upsales Technology AB, you can compare the effects of market volatilities on I Tech and Upsales Technology 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 I Tech with a short position of Upsales Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of I Tech and Upsales Technology.

Diversification Opportunities for I Tech and Upsales Technology

-0.07

Correlation Coefficient

I Tech  Upsales Technology

Good diversification

The 3 months correlation between ITECH and Upsales is -0.07. Overlapping area represents the amount of risk that can be diversified away by holding I Tech and Upsales Technology AB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upsales Technology and I Tech 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 I Tech are associated (or correlated) with Upsales Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upsales Technology has no effect on the direction of I Tech i.e., I Tech and Upsales Technology go up and down completely randomly.

Pair Corralation between I Tech and Upsales Technology

Assuming the 90 days trading horizon I Tech is expected to generate 0.66 times more return on investment than Upsales Technology. However, I Tech is 1.51 times less risky than Upsales Technology. It trades about 0.25 of its potential returns per unit of risk. Upsales Technology AB is currently generating about 0.02 per unit of risk. If you would invest  7,899  in I Tech on April 20, 2025 and sell it today you would earn a total of  3,451  from holding I Tech or generate 43.69% return on investment over 90 days.

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

I Tech  vs.  Upsales Technology AB

I Tech

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in I Tech are ranked lower than 20 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively uncertain basic indicators, I Tech unveiled solid returns over the last few months and may actually be approaching a breakup point.

Upsales Technology

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Upsales Technology AB are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Upsales Technology is not utilizing all of its potentials. The newest stock price disturbance, may contribute to short-term losses for the investors.

Pair Trading with I Tech and Upsales Technology

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

The idea behind I Tech and Upsales Technology AB 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.