Correlation Between Uipath and Mogo
Can any of the company-specific risk be diversified away by investing in both Uipath and Mogo 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 Uipath and Mogo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Uipath Inc and Mogo Inc, you can compare the effects of market volatilities on Uipath and Mogo 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 Uipath with a short position of Mogo. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uipath and Mogo.
Diversification Opportunities for Uipath and Mogo
Very weak diversification
The 3 months correlation between Uipath and Mogo is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding Uipath Inc and Mogo Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mogo Inc and Uipath 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 Uipath Inc are associated (or correlated) with Mogo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mogo Inc has no effect on the direction of Uipath i.e., Uipath and Mogo go up and down completely randomly.
Pair Corralation between Uipath and Mogo
Given the investment horizon of 90 days Uipath is expected to generate 3.34 times less return on investment than Mogo. But when comparing it to its historical volatility, Uipath Inc is 2.41 times less risky than Mogo. It trades about 0.2 of its potential returns per unit of risk. Mogo Inc is currently generating about 0.28 of returns per unit of risk over similar time horizon. If you would invest 102.00 in Mogo Inc on August 24, 2024 and sell it today you would earn a total of 50.00 from holding Mogo Inc or generate 49.02% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Uipath Inc vs. Mogo Inc
Performance |
| Timeline |
| Uipath Inc |
| Mogo Inc |
Uipath and Mogo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Uipath and Mogo
The main advantage of trading using opposite Uipath and Mogo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uipath position performs unexpectedly, Mogo 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 Mogo will offset losses from the drop in Mogo's long position.The idea behind Uipath Inc and Mogo Inc pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Mogo vs. Katapult Holdings Equity | Mogo vs. International Money Express | Mogo vs. Bakkt Holdings | Mogo vs. Kaltura |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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