Correlation Between Snowflake and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Snowflake 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 Snowflake and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Snowflake and Uber Technologies, you can compare the effects of market volatilities on Snowflake 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 Snowflake with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Snowflake and Uber Technologies.
Diversification Opportunities for Snowflake and Uber Technologies
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Snowflake and Uber is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Snowflake and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Snowflake 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 Snowflake 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 Snowflake i.e., Snowflake and Uber Technologies go up and down completely randomly.
Pair Corralation between Snowflake and Uber Technologies
Assuming the 90 days trading horizon Snowflake is expected to under-perform the Uber Technologies. But the stock apears to be less risky and, when comparing its historical volatility, Snowflake is 1.14 times less risky than Uber Technologies. The stock trades about -0.06 of its potential returns per unit of risk. The Uber Technologies is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 9,400 in Uber Technologies on October 14, 2024 and sell it today you would earn a total of 681.00 from holding Uber Technologies or generate 7.24% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Snowflake vs. Uber Technologies
Performance |
| Timeline |
| Snowflake |
| Uber Technologies |
Snowflake and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Snowflake and Uber Technologies
The main advantage of trading using opposite Snowflake and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Snowflake 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.| Snowflake vs. Metalrgica Riosulense SA | Snowflake vs. Nordon Indstrias Metalrgicas | Snowflake vs. Zoom Video Communications | Snowflake vs. Liberty Broadband |
| Uber Technologies vs. Live Nation Entertainment, | Uber Technologies vs. DENTSPLY SIRONA | Uber Technologies vs. METISA Metalrgica Timboense | Uber Technologies vs. Vulcan Materials |
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.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |