Correlation Between FAST RETAIL and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both FAST RETAIL 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 FAST RETAIL and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FAST RETAIL ADR and Uber Technologies, you can compare the effects of market volatilities on FAST RETAIL 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 FAST RETAIL with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FAST RETAIL and Uber Technologies.
Diversification Opportunities for FAST RETAIL and Uber Technologies
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between FAST and Uber is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding FAST RETAIL ADR and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and FAST RETAIL 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 FAST RETAIL ADR 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 FAST RETAIL i.e., FAST RETAIL and Uber Technologies go up and down completely randomly.
Pair Corralation between FAST RETAIL and Uber Technologies
Assuming the 90 days trading horizon FAST RETAIL ADR is expected to generate 0.74 times more return on investment than Uber Technologies. However, FAST RETAIL ADR is 1.36 times less risky than Uber Technologies. It trades about 0.1 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.34 per unit of risk. If you would invest 3,080 in FAST RETAIL ADR on September 25, 2024 and sell it today you would earn a total of 100.00 from holding FAST RETAIL ADR or generate 3.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
FAST RETAIL ADR vs. Uber Technologies
Performance |
| Timeline |
| FAST RETAIL ADR |
| Uber Technologies |
FAST RETAIL and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FAST RETAIL and Uber Technologies
The main advantage of trading using opposite FAST RETAIL and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FAST RETAIL 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.| FAST RETAIL vs. FAST RETAILCOSPHDR 1 | FAST RETAIL vs. Ross Stores | FAST RETAIL vs. Stitch Fix | FAST RETAIL vs. AOYAMA TRADING |
| Uber Technologies vs. FUYO GENERAL LEASE | Uber Technologies vs. PLAYSTUDIOS A DL 0001 | Uber Technologies vs. Air Lease | Uber Technologies vs. Highlight Communications AG |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |