Correlation Between Albertsons Companies and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Albertsons Companies and Uber Technologies 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 Albertsons Companies and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Albertsons Companies and Uber Technologies, you can compare the effects of market volatilities on Albertsons Companies and Uber Technologies 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 Albertsons Companies with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Albertsons Companies and Uber Technologies.
Diversification Opportunities for Albertsons Companies and Uber Technologies
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Albertsons and Uber is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Albertsons Companies and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Albertsons Companies 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 Albertsons Companies are associated (or correlated) with Uber Technologies. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uber Technologies has no effect on the direction of Albertsons Companies i.e., Albertsons Companies and Uber Technologies go up and down completely randomly.
Pair Corralation between Albertsons Companies and Uber Technologies
Considering the 90-day investment horizon Albertsons Companies is expected to generate 0.49 times more return on investment than Uber Technologies. However, Albertsons Companies is 2.03 times less risky than Uber Technologies. It trades about 0.22 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.12 per unit of risk. If you would invest 1,834 in Albertsons Companies on August 28, 2024 and sell it today you would earn a total of 120.00 from holding Albertsons Companies or generate 6.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Albertsons Companies vs. Uber Technologies
Performance |
| Timeline |
| Albertsons Companies |
| Uber Technologies |
Albertsons Companies and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Albertsons Companies and Uber Technologies
The main advantage of trading using opposite Albertsons Companies and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Albertsons Companies position performs unexpectedly, Uber Technologies 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 Uber Technologies will offset losses from the drop in Uber Technologies' long position.| Albertsons Companies vs. Innovative Food Hldg | Albertsons Companies vs. Calavo Growers | Albertsons Companies vs. The Chefs Warehouse | Albertsons Companies vs. AMCON Distributing |
| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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