Correlation Between Stratasys and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both Stratasys 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 Stratasys and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Stratasys and Uber Technologies, you can compare the effects of market volatilities on Stratasys 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 Stratasys with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of Stratasys and Uber Technologies.
Diversification Opportunities for Stratasys and Uber Technologies
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Stratasys and Uber is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding Stratasys and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and Stratasys 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 Stratasys 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 Stratasys i.e., Stratasys and Uber Technologies go up and down completely randomly.
Pair Corralation between Stratasys and Uber Technologies
Given the investment horizon of 90 days Stratasys is expected to generate 1.77 times more return on investment than Uber Technologies. However, Stratasys is 1.77 times more volatile than Uber Technologies. It trades about 0.17 of its potential returns per unit of risk. Uber Technologies is currently generating about -0.23 per unit of risk. If you would invest 875.00 in Stratasys on September 12, 2024 and sell it today you would earn a total of 159.00 from holding Stratasys or generate 18.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Stratasys vs. Uber Technologies
Performance |
| Timeline |
| Stratasys |
| Uber Technologies |
Stratasys and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Stratasys and Uber Technologies
The main advantage of trading using opposite Stratasys and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Stratasys 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.| Stratasys vs. Victory Integrity Smallmid Cap | Stratasys vs. Hilton Worldwide Holdings | Stratasys vs. NVIDIA | Stratasys vs. JPMorgan Chase Co |
| 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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