Correlation Between Made Tech and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Made Tech 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 Made Tech and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Made Tech Group and Uber Technologies, you can compare the effects of market volatilities on Made Tech 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 Made Tech with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Made Tech and Uber Technologies.
Diversification Opportunities for Made Tech and Uber Technologies
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Made and Uber is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Made Tech Group and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Made Tech 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 Made Tech Group 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 Made Tech i.e., Made Tech and Uber Technologies go up and down completely randomly.
Pair Corralation between Made Tech and Uber Technologies
Assuming the 90 days trading horizon Made Tech Group is expected to generate 4.86 times more return on investment than Uber Technologies. However, Made Tech is 4.86 times more volatile than Uber Technologies. It trades about 0.11 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.05 per unit of risk. If you would invest 1,538 in Made Tech Group on September 3, 2024 and sell it today you would earn a total of 762.00 from holding Made Tech Group or generate 49.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 99.22% |
| Values | Daily Returns |
Made Tech Group vs. Uber Technologies
Performance |
| Timeline |
| Made Tech Group |
| Uber Technologies |
Made Tech and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Made Tech and Uber Technologies
The main advantage of trading using opposite Made Tech and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Made Tech 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.| Made Tech vs. Samsung Electronics Co | Made Tech vs. Samsung Electronics Co | Made Tech vs. Hyundai Motor | Made Tech vs. Toyota Motor Corp |
| Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Samsung Electronics Co | Uber Technologies vs. Hyundai Motor | Uber Technologies vs. Toyota Motor Corp |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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