Correlation Between Geely Automobile and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Geely Automobile 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 Geely Automobile and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Geely Automobile Holdings and Uber Technologies, you can compare the effects of market volatilities on Geely Automobile 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 Geely Automobile with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Geely Automobile and Uber Technologies.
Diversification Opportunities for Geely Automobile and Uber Technologies
-0.65 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Geely and Uber is -0.65. Overlapping area represents the amount of risk that can be diversified away by holding Geely Automobile Holdings and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Geely Automobile 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 Geely Automobile Holdings 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 Geely Automobile i.e., Geely Automobile and Uber Technologies go up and down completely randomly.
Pair Corralation between Geely Automobile and Uber Technologies
Assuming the 90 days horizon Geely Automobile is expected to generate 21.87 times less return on investment than Uber Technologies. In addition to that, Geely Automobile is 1.01 times more volatile than Uber Technologies. It trades about 0.01 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.16 per unit of volatility. If you would invest 6,380 in Uber Technologies on November 7, 2024 and sell it today you would earn a total of 349.00 from holding Uber Technologies or generate 5.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Geely Automobile Holdings vs. Uber Technologies
Performance |
| Timeline |
| Geely Automobile Holdings |
| Uber Technologies |
Geely Automobile and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Geely Automobile and Uber Technologies
The main advantage of trading using opposite Geely Automobile and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Geely Automobile 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.| Geely Automobile vs. Tesla Inc | Geely Automobile vs. Toyota Motor | Geely Automobile vs. Toyota Motor | Geely Automobile vs. BYD Company Limited |
| Uber Technologies vs. Salesforce | Uber Technologies vs. SAP SE | Uber Technologies vs. PagerDuty | Uber Technologies vs. Rocket Internet SE |
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 Positions Ratings module to 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.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |