Correlation Between Bm Technologies and Uber Technologies

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Can any of the company-specific risk be diversified away by investing in both Bm Technologies 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 Bm Technologies and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Bm Technologies and Uber Technologies, you can compare the effects of market volatilities on Bm Technologies 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 Bm Technologies with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bm Technologies and Uber Technologies.

Diversification Opportunities for Bm Technologies and Uber Technologies

BMTXUberDiversified AwayBMTXUberDiversified Away100%
0.67
  Correlation Coefficient

Poor diversification

The 3 months correlation between BMTX and Uber is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Bm Technologies and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Bm 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 Bm Technologies 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 Bm Technologies i.e., Bm Technologies and Uber Technologies go up and down completely randomly.

Pair Corralation between Bm Technologies and Uber Technologies

Given the investment horizon of 90 days Bm Technologies is expected to generate 2.49 times more return on investment than Uber Technologies. However, Bm Technologies is 2.49 times more volatile than Uber Technologies. It trades about 0.05 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.09 per unit of risk. If you would invest  298.00  in Bm Technologies on November 27, 2024 and sell it today you would earn a total of  202.00  from holding Bm Technologies or generate 67.79% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthSignificant
Accuracy97.03%
ValuesDaily Returns

Bm Technologies  vs.  Uber Technologies

 Performance 
JavaScript chart by amCharts 3.21.15Dec2025Feb -15-10-50510
JavaScript chart by amCharts 3.21.15BMTX UBER
       Timeline  
Bm Technologies 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Over the last 90 days Bm Technologies has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly weak basic indicators, Bm Technologies may actually be approaching a critical reversion point that can send shares even higher in March 2025.
Uber Technologies 

Risk-Adjusted Performance

Insignificant

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in Uber Technologies are ranked lower than 4 (%) of all global equities and portfolios over the last 90 days. Even with relatively unfluctuating technical and fundamental indicators, Uber Technologies may actually be approaching a critical reversion point that can send shares even higher in March 2025.
JavaScript chart by amCharts 3.21.15DecJanFebJanFeb6065707580

Bm Technologies and Uber Technologies Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-1.56-1.14-0.72-0.30.04290.430.851.271.692.11 0.20.40.60.81.01.21.4
JavaScript chart by amCharts 3.21.15BMTX UBER
       Returns  

Pair Trading with Bm Technologies and Uber Technologies

The main advantage of trading using opposite Bm Technologies and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bm Technologies 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.
The idea behind Bm Technologies and Uber Technologies pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.

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