Correlation Between GX AI and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both GX AI 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 GX AI and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GX AI TECH and Uber Technologies, you can compare the effects of market volatilities on GX AI 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 GX AI with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of GX AI and Uber Technologies.
Diversification Opportunities for GX AI and Uber Technologies
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between BAIQ39 and Uber is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding GX AI TECH and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and GX AI 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 GX AI TECH 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 GX AI i.e., GX AI and Uber Technologies go up and down completely randomly.
Pair Corralation between GX AI and Uber Technologies
Assuming the 90 days trading horizon GX AI TECH is expected to generate 0.56 times more return on investment than Uber Technologies. However, GX AI TECH is 1.8 times less risky than Uber Technologies. It trades about 0.17 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.03 per unit of risk. If you would invest 5,543 in GX AI TECH on September 20, 2024 and sell it today you would earn a total of 2,625 from holding GX AI TECH or generate 47.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.27% |
| Values | Daily Returns |
GX AI TECH vs. Uber Technologies
Performance |
| Timeline |
| GX AI TECH |
| Uber Technologies |
GX AI and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GX AI and Uber Technologies
The main advantage of trading using opposite GX AI and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GX AI 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.| GX AI vs. NXP Semiconductors NV | GX AI vs. Palantir Technologies | GX AI vs. United Rentals | GX AI vs. Spotify Technology SA |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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