Correlation Between T MOBILE and Uber Technologies
Can any of the company-specific risk be diversified away by investing in both T MOBILE 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 T MOBILE and Uber Technologies into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T MOBILE INCDL 00001 and Uber Technologies, you can compare the effects of market volatilities on T MOBILE 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 T MOBILE with a short position of Uber Technologies. Check out your portfolio center. Please also check ongoing floating volatility patterns of T MOBILE and Uber Technologies.
Diversification Opportunities for T MOBILE and Uber Technologies
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between TM5 and Uber is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding T MOBILE INCDL 00001 and Uber Technologies in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uber Technologies and T MOBILE 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 T MOBILE INCDL 00001 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 T MOBILE i.e., T MOBILE and Uber Technologies go up and down completely randomly.
Pair Corralation between T MOBILE and Uber Technologies
Assuming the 90 days trading horizon T MOBILE INCDL 00001 is expected to under-perform the Uber Technologies. But the stock apears to be less risky and, when comparing its historical volatility, T MOBILE INCDL 00001 is 1.4 times less risky than Uber Technologies. The stock trades about -0.2 of its potential returns per unit of risk. The Uber Technologies is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 6,199 in Uber Technologies on October 11, 2024 and sell it today you would earn a total of 128.00 from holding Uber Technologies or generate 2.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
T MOBILE INCDL 00001 vs. Uber Technologies
Performance |
| Timeline |
| T MOBILE INCDL |
| Uber Technologies |
T MOBILE and Uber Technologies Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T MOBILE and Uber Technologies
The main advantage of trading using opposite T MOBILE and Uber Technologies positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T MOBILE 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.| T MOBILE vs. IMAGIN MEDICAL INC | T MOBILE vs. PLAYMATES TOYS | T MOBILE vs. CompuGroup Medical SE | T MOBILE vs. ANTA SPORTS PRODUCT |
| Uber Technologies vs. ANGLO ASIAN MINING | Uber Technologies vs. T MOBILE INCDL 00001 | Uber Technologies vs. MOBILE FACTORY INC | Uber Technologies vs. FIH MOBILE |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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