Correlation Between MicroAlgo and Upstart Holdings

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

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

Diversification Opportunities for MicroAlgo and Upstart Holdings

-0.77

Correlation Coefficient

MicroAlgo  Upstart Holdings

Pay attention - limited upside

The 3 months correlation between MicroAlgo and Upstart is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding MicroAlgo and Upstart Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Upstart Holdings and MicroAlgo 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 MicroAlgo are associated (or correlated) with Upstart Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Upstart Holdings has no effect on the direction of MicroAlgo i.e., MicroAlgo and Upstart Holdings go up and down completely randomly.

Pair Corralation between MicroAlgo and Upstart Holdings

Given the investment horizon of 90 days MicroAlgo is expected to under-perform the Upstart Holdings. In addition to that, MicroAlgo is 2.4 times more volatile than Upstart Holdings. It trades about -0.16 of its total potential returns per unit of risk. Upstart Holdings is currently generating about 0.13 per unit of volatility. If you would invest  4,747  in Upstart Holdings on May 19, 2025 and sell it today you would earn a total of  1,662  from holding Upstart Holdings or generate 35.01% return on investment over 90 days.

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

MicroAlgo  vs.  Upstart Holdings

MicroAlgo

Risk-Adjusted Performance

Weakest

Over the last 90 days MicroAlgo has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of unsteady performance in the last few months, the Stock's technical and fundamental indicators remain very healthy which may send shares a bit higher in September 2025. The recent disarray may also be a sign of long period up-swing for the firm investors.

Upstart Holdings

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in Upstart Holdings are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively unfluctuating basic indicators, Upstart Holdings unveiled solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with MicroAlgo and Upstart Holdings

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

The idea behind MicroAlgo and Upstart Holdings 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.

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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.