Correlation Between Triple Flag and Upstart Investments

Can any of the company-specific risk be diversified away by investing in both Triple Flag and Upstart Investments 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 Triple Flag and Upstart Investments into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Triple Flag Precious and Upstart Investments, you can compare the effects of market volatilities on Triple Flag and Upstart Investments 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 Triple Flag with a short position of Upstart Investments. Check out your portfolio center. Please also check ongoing floating volatility patterns of Triple Flag and Upstart Investments.

Diversification Opportunities for Triple Flag and Upstart Investments

0.0

Correlation Coefficient

Triple Flag  Upstart Investments

Pay attention - limited upside

The 3 months correlation between Triple and Upstart is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Triple Flag Precious and Upstart Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Investments and Triple Flag 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 Triple Flag Precious are associated (or correlated) with Upstart Investments. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Investments has no effect on the direction of Triple Flag i.e., Triple Flag and Upstart Investments go up and down completely randomly.

Pair Corralation between Triple Flag and Upstart Investments

If you would invest  3,075  in Triple Flag Precious on April 21, 2025 and sell it today you would earn a total of  103.00  from holding Triple Flag Precious or generate 3.35% return on investment over 90 days.

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

Triple Flag Precious  vs.  Upstart Investments

Triple Flag Precious

Risk-Adjusted Performance

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Triple Flag Precious are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy basic indicators, Triple Flag is not utilizing all of its potentials. The current stock price disarray, may contribute to short-term losses for the investors.

Upstart Investments

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upstart Investments has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly stable basic indicators, Upstart Investments is not utilizing all of its potentials. The latest stock price fuss, may contribute to near-short-term losses for the sophisticated investors.

Pair Trading with Triple Flag and Upstart Investments

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

The idea behind Triple Flag Precious and Upstart Investments 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.