Correlation Between Uber Technologies and Tanger Factory
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Tanger Factory 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 Uber Technologies and Tanger Factory into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Tanger Factory Outlet, you can compare the effects of market volatilities on Uber Technologies and Tanger Factory 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 Uber Technologies with a short position of Tanger Factory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Tanger Factory.
Diversification Opportunities for Uber Technologies and Tanger Factory
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Uber and Tanger is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Tanger Factory Outlet in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tanger Factory Outlet and Uber Technologies 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 Uber Technologies are associated (or correlated) with Tanger Factory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tanger Factory Outlet has no effect on the direction of Uber Technologies i.e., Uber Technologies and Tanger Factory go up and down completely randomly.
Pair Corralation between Uber Technologies and Tanger Factory
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.1 times more return on investment than Tanger Factory. However, Uber Technologies is 1.1 times more volatile than Tanger Factory Outlet. It trades about 0.11 of its potential returns per unit of risk. Tanger Factory Outlet is currently generating about 0.11 per unit of risk. If you would invest 2,629 in Uber Technologies on September 5, 2024 and sell it today you would earn a total of 4,581 from holding Uber Technologies or generate 174.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 83.37% |
| Values | Daily Returns |
Uber Technologies vs. Tanger Factory Outlet
Performance |
| Timeline |
| Uber Technologies |
| Tanger Factory Outlet |
Uber Technologies and Tanger Factory Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Tanger Factory
The main advantage of trading using opposite Uber Technologies and Tanger Factory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Tanger Factory 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 Tanger Factory will offset losses from the drop in Tanger Factory's long position.| Uber Technologies vs. CVR Energy | Uber Technologies vs. Viridian Therapeutics | Uber Technologies vs. Nationwide Building Society | Uber Technologies vs. Dollar Tree |
| Tanger Factory vs. Naked Wines plc | Tanger Factory vs. Made Tech Group | Tanger Factory vs. Uber Technologies | Tanger Factory vs. Datalogic |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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