Correlation Between Sandstorm Gold and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Sandstorm Gold 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 Sandstorm Gold and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sandstorm Gold Ltd and Uber Technologies, you can compare the effects of market volatilities on Sandstorm Gold 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 Sandstorm Gold with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sandstorm Gold and Uber Technologies.
Diversification Opportunities for Sandstorm Gold and Uber Technologies
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sandstorm and Uber is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Sandstorm Gold Ltd and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Sandstorm Gold 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 Sandstorm Gold 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 Sandstorm Gold i.e., Sandstorm Gold and Uber Technologies go up and down completely randomly.
Pair Corralation between Sandstorm Gold and Uber Technologies
Given the investment horizon of 90 days Sandstorm Gold is expected to generate 4.22 times less return on investment than Uber Technologies. But when comparing it to its historical volatility, Sandstorm Gold Ltd is 1.02 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 2,703 in Uber Technologies on September 2, 2024 and sell it today you would earn a total of 4,493 from holding Uber Technologies or generate 166.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sandstorm Gold Ltd vs. Uber Technologies
Performance |
| Timeline |
| Sandstorm Gold |
| Uber Technologies |
Sandstorm Gold and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sandstorm Gold and Uber Technologies
The main advantage of trading using opposite Sandstorm Gold and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sandstorm Gold 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.| Sandstorm Gold vs. Fortitude Gold Corp | Sandstorm Gold vs. New Gold | Sandstorm Gold vs. Galiano Gold | Sandstorm Gold vs. GoldMining |
| Uber Technologies vs. Zoom Video Communications | Uber Technologies vs. Snowflake | Uber Technologies vs. Workday | Uber Technologies vs. C3 Ai 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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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