Correlation Between AMTD Digital and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both AMTD Digital 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 AMTD Digital and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between AMTD Digital and Uber Technologies, you can compare the effects of market volatilities on AMTD Digital 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 AMTD Digital with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of AMTD Digital and Uber Technologies.
Diversification Opportunities for AMTD Digital and Uber Technologies
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between AMTD and Uber is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding AMTD Digital and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and AMTD Digital 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 AMTD Digital 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 AMTD Digital i.e., AMTD Digital and Uber Technologies go up and down completely randomly.
Pair Corralation between AMTD Digital and Uber Technologies
Considering the 90-day investment horizon AMTD Digital is expected to generate 2.09 times less return on investment than Uber Technologies. In addition to that, AMTD Digital is 1.38 times more volatile than Uber Technologies. It trades about 0.11 of its total potential returns per unit of risk. Uber Technologies is currently generating about 0.32 per unit of volatility. If you would invest 6,021 in Uber Technologies on October 20, 2024 and sell it today you would earn a total of 713.00 from holding Uber Technologies or generate 11.84% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
AMTD Digital vs. Uber Technologies
Performance |
| Timeline |
| AMTD Digital |
| Uber Technologies |
AMTD Digital and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AMTD Digital and Uber Technologies
The main advantage of trading using opposite AMTD Digital and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AMTD Digital 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.| AMTD Digital vs. HeartCore Enterprises | AMTD Digital vs. Beamr Imaging Ltd | AMTD Digital vs. CXApp Inc | AMTD Digital vs. SoundHound AI |
| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai Inc |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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