Correlation Between Peel Mining and Upland Software

Can any of the company-specific risk be diversified away by investing in both Peel Mining and Upland Software 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 Peel Mining and Upland Software into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Peel Mining Limited and Upland Software, you can compare the effects of market volatilities on Peel Mining and Upland Software 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 Peel Mining with a short position of Upland Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Peel Mining and Upland Software.

Diversification Opportunities for Peel Mining and Upland Software

-0.65

Correlation Coefficient

Peel Mining  Upland Software

Excellent diversification

The 3 months correlation between Peel and Upland is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Peel Mining Limited and Upland Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upland Software and Peel Mining 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 Peel Mining Limited are associated (or correlated) with Upland Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upland Software has no effect on the direction of Peel Mining i.e., Peel Mining and Upland Software go up and down completely randomly.

Pair Corralation between Peel Mining and Upland Software

Assuming the 90 days horizon Peel Mining Limited is expected to generate 1.55 times more return on investment than Upland Software. However, Peel Mining is 1.55 times more volatile than Upland Software. It trades about 0.0 of its potential returns per unit of risk. Upland Software is currently generating about -0.04 per unit of risk. If you would invest  4.40  in Peel Mining Limited on April 24, 2025 and sell it today you would lose (0.40) from holding Peel Mining Limited or give up 9.09% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	98.44%
Values	Daily Returns

Peel Mining Limited  vs.  Upland Software

Peel Mining Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Peel Mining Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Peel Mining is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Upland Software

Risk-Adjusted Performance

Very Weak

Over the last 90 days Upland Software has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest fragile performance, the Stock's basic indicators remain stable and the current disturbance on Wall Street may also be a sign of long-run gains for the company stockholders.

Pair Trading with Peel Mining and Upland Software

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

The idea behind Peel Mining Limited and Upland Software 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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.