Correlation Between Apple and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Apple 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 Apple and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Apple Inc and Uber Technologies, you can compare the effects of market volatilities on Apple 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 Apple with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Apple and Uber Technologies.
Diversification Opportunities for Apple and Uber Technologies
-0.78 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Apple and Uber is -0.78. Overlapping area represents the amount of risk that can be diversified away by holding Apple Inc and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Apple 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 Apple Inc 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 Apple i.e., Apple and Uber Technologies go up and down completely randomly.
Pair Corralation between Apple and Uber Technologies
Assuming the 90 days trading horizon Apple Inc is expected to under-perform the Uber Technologies. In addition to that, Apple is 1.17 times more volatile than Uber Technologies. It trades about -0.05 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.11 per unit of volatility. If you would invest 6,236 in Uber Technologies on November 4, 2024 and sell it today you would earn a total of 242.00 from holding Uber Technologies or generate 3.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Apple Inc vs. Uber Technologies
Performance |
| Timeline |
| Apple Inc |
| Uber Technologies |
Apple and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Apple and Uber Technologies
The main advantage of trading using opposite Apple and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Apple 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.| Apple vs. Constellation Software | Apple vs. MAVEN WIRELESS SWEDEN | Apple vs. VIRGIN WINES UK | Apple vs. ITALIAN WINE BRANDS |
| Uber Technologies vs. CN MODERN DAIRY | Uber Technologies vs. Nanjing Panda Electronics | Uber Technologies vs. LIFEWAY FOODS | Uber Technologies vs. Nucletron Electronic Aktiengesellschaft |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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