Correlation Between Uber Technologies and Vienna Insurance
Can any of the company-specific risk be diversified away by investing in both Uber Technologies and Vienna Insurance 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 Vienna Insurance into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uber Technologies and Vienna Insurance Group, you can compare the effects of market volatilities on Uber Technologies and Vienna Insurance 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 Vienna Insurance. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uber Technologies and Vienna Insurance.
Diversification Opportunities for Uber Technologies and Vienna Insurance
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Uber and Vienna is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Uber Technologies and Vienna Insurance Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vienna Insurance 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 Vienna Insurance. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vienna Insurance has no effect on the direction of Uber Technologies i.e., Uber Technologies and Vienna Insurance go up and down completely randomly.
Pair Corralation between Uber Technologies and Vienna Insurance
Assuming the 90 days trading horizon Uber Technologies is expected to generate 1.92 times more return on investment than Vienna Insurance. However, Uber Technologies is 1.92 times more volatile than Vienna Insurance Group. It trades about 0.11 of its potential returns per unit of risk. Vienna Insurance Group is currently generating about 0.07 per unit of risk. If you would invest 2,854 in Uber Technologies on September 3, 2024 and sell it today you would earn a total of 4,451 from holding Uber Technologies or generate 155.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 98.76% |
| Values | Daily Returns |
Uber Technologies vs. Vienna Insurance Group
Performance |
| Timeline |
| Uber Technologies |
| Vienna Insurance |
Uber Technologies and Vienna Insurance Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uber Technologies and Vienna Insurance
The main advantage of trading using opposite Uber Technologies and Vienna Insurance positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uber Technologies position performs unexpectedly, Vienna Insurance 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 Vienna Insurance will offset losses from the drop in Vienna Insurance's long position.| Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Hyundai Motor | Uber Technologies vs. Toyota Motor Corp |
| Vienna Insurance vs. Catalyst Media Group | Vienna Insurance vs. CATLIN GROUP | Vienna Insurance vs. RTW Venture Fund | Vienna Insurance vs. Secure Property Development |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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