Correlation Between NH Foods and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both NH Foods 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 NH Foods and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between NH Foods Ltd and Uber Technologies, you can compare the effects of market volatilities on NH Foods 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 NH Foods with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of NH Foods and Uber Technologies.
Diversification Opportunities for NH Foods and Uber Technologies
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between NIPMY and Uber is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding NH Foods Ltd and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and NH Foods 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 NH Foods Ltd 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 NH Foods i.e., NH Foods and Uber Technologies go up and down completely randomly.
Pair Corralation between NH Foods and Uber Technologies
Assuming the 90 days horizon NH Foods is expected to generate 4.68 times less return on investment than Uber Technologies. But when comparing it to its historical volatility, NH Foods Ltd is 4.67 times less risky than Uber Technologies. It trades about 0.08 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 3,390 in Uber Technologies on August 27, 2024 and sell it today you would earn a total of 3,761 from holding Uber Technologies or generate 110.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
NH Foods Ltd vs. Uber Technologies
Performance |
| Timeline |
| NH Foods |
| Uber Technologies |
NH Foods and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NH Foods and Uber Technologies
The main advantage of trading using opposite NH Foods and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NH Foods 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.| NH Foods vs. Artisan Consumer Goods | NH Foods vs. The A2 Milk | NH Foods vs. BioAdaptives | NH Foods vs. General Mills |
| Uber Technologies vs. Kingsoft Cloud Holdings | Uber Technologies vs. AMTD Digital | Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |