Correlation Between FUYO GENERAL and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both FUYO GENERAL 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 FUYO GENERAL and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between FUYO GENERAL LEASE and Uber Technologies, you can compare the effects of market volatilities on FUYO GENERAL 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 FUYO GENERAL with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of FUYO GENERAL and Uber Technologies.
Diversification Opportunities for FUYO GENERAL and Uber Technologies
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between FUYO and Uber is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding FUYO GENERAL LEASE and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and FUYO GENERAL 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 FUYO GENERAL LEASE 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 FUYO GENERAL i.e., FUYO GENERAL and Uber Technologies go up and down completely randomly.
Pair Corralation between FUYO GENERAL and Uber Technologies
Assuming the 90 days horizon FUYO GENERAL LEASE is expected to generate 0.46 times more return on investment than Uber Technologies. However, FUYO GENERAL LEASE is 2.19 times less risky than Uber Technologies. It trades about 0.18 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.15 per unit of risk. If you would invest 6,350 in FUYO GENERAL LEASE on September 25, 2024 and sell it today you would earn a total of 600.00 from holding FUYO GENERAL LEASE or generate 9.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
FUYO GENERAL LEASE vs. Uber Technologies
Performance |
| Timeline |
| FUYO GENERAL LEASE |
| Uber Technologies |
FUYO GENERAL and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with FUYO GENERAL and Uber Technologies
The main advantage of trading using opposite FUYO GENERAL and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if FUYO GENERAL 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.| FUYO GENERAL vs. Ashtead Group plc | FUYO GENERAL vs. WillScot Mobile Mini | FUYO GENERAL vs. Avis Budget Group | FUYO GENERAL vs. Sixt SE |
| 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
Other Complementary Tools
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account |