Correlation Between Sligro Food and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Sligro Food 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 Sligro Food and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sligro Food Group and Uber Technologies, you can compare the effects of market volatilities on Sligro Food 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 Sligro Food with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sligro Food and Uber Technologies.
Diversification Opportunities for Sligro Food and Uber Technologies
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sligro and Uber is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Sligro Food Group and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Sligro Food 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 Sligro Food Group 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 Sligro Food i.e., Sligro Food and Uber Technologies go up and down completely randomly.
Pair Corralation between Sligro Food and Uber Technologies
Assuming the 90 days horizon Sligro Food Group is expected to generate 0.88 times more return on investment than Uber Technologies. However, Sligro Food Group is 1.14 times less risky than Uber Technologies. It trades about -0.22 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.23 per unit of risk. If you would invest 1,366 in Sligro Food Group on September 12, 2024 and sell it today you would lose (166.00) from holding Sligro Food Group or give up 12.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Sligro Food Group vs. Uber Technologies
Performance |
| Timeline |
| Sligro Food Group |
| Uber Technologies |
Sligro Food and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sligro Food and Uber Technologies
The main advantage of trading using opposite Sligro Food and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sligro Food 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.| Sligro Food vs. Avient Corp | Sligro Food vs. Eastman Chemical | Sligro Food vs. Ecovyst | Sligro Food vs. PepsiCo |
| Uber Technologies vs. Manhattan Associates | Uber Technologies vs. Paycom Soft | Uber Technologies vs. Clearwater Analytics Holdings | Uber Technologies vs. Procore Technologies |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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