Correlation Between Ascendas Real and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Ascendas Real 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 Ascendas Real and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Ascendas Real Estate and Uber Technologies, you can compare the effects of market volatilities on Ascendas Real 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 Ascendas Real with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ascendas Real and Uber Technologies.
Diversification Opportunities for Ascendas Real and Uber Technologies
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ascendas and Uber is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Ascendas Real Estate and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Ascendas Real 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 Ascendas Real Estate 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 Ascendas Real i.e., Ascendas Real and Uber Technologies go up and down completely randomly.
Pair Corralation between Ascendas Real and Uber Technologies
Assuming the 90 days horizon Ascendas Real is expected to generate 6.14 times less return on investment than Uber Technologies. But when comparing it to its historical volatility, Ascendas Real Estate is 1.42 times less risky than Uber Technologies. It trades about 0.02 of its potential returns per unit of risk. Uber Technologies is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,606 in Uber Technologies on September 3, 2024 and sell it today you would earn a total of 4,235 from holding Uber Technologies or generate 162.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.8% |
| Values | Daily Returns |
Ascendas Real Estate vs. Uber Technologies
Performance |
| Timeline |
| Ascendas Real Estate |
| Uber Technologies |
Ascendas Real and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ascendas Real and Uber Technologies
The main advantage of trading using opposite Ascendas Real and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ascendas Real 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.| Ascendas Real vs. Uber Technologies | Ascendas Real vs. Lion Biotechnologies | Ascendas Real vs. THORNEY TECHS LTD | Ascendas Real vs. INTER CARS SA |
| Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple Inc | Uber Technologies vs. Apple 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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